Electronic Arts has announced an agreement to acquire U.K.-based game developer and publisher Codemasters.

The deal is worth an estimated $1.2 billion and is anticipated to close in the first quarter of next year. It will give EA ownership of popular racing video game titles including “Dirt” and “Grid.”

“We believe there is a deeply compelling opportunity in bringing together Codemasters and Electronic Arts to create amazing and innovative new racing games for fans,” says Andrew Wilson, chief executive officer, Electronic Arts. “Our industry is growing, the racing category is growing, and together we will be positioned to lead in a new era of racing entertainment. We have admired Codemasters’ creative talent and high-quality games for many years. With the full leverage of EA’s technology, platform expertise, and global reach, this combination will allow us to grow our existing franchises and deliver more industry-defining racing experiences to a global fan base. We are pleased that both our Boards of Directors are recommending this transaction, and we look forward to welcoming such an exciting and talented team to the Electronic Arts family.”

Codemasters believes it will gain insight into live services operations, game analytics and technology by leveraging EA’s vast experience in those spaces.

“Electronic Arts and Codemasters have a shared ambition to lead the video game racing category,” says Gerhard Florin, chairman, Codemasters. “The Board of Codemasters firmly believes the company would benefit from EA’s knowledge, resources and extensive global scale – both overall and specifically within the racing sector. We feel this union would provide an exciting and prosperous future for Codemasters, allowing our teams to create, launch and service bigger and better games to an extremely passionate audience.”