The 40-person team was shut down by Sega for undisclosed reasons, although flat sales of Sega Rally Revo, the studio's first and only released game, is widely assumed to be the cause. The Codemasters announcement follows several days of rumors that such a deal would take place.
"In seizing this opportunity, we have created additional resources to escalate our plans in the racing segment," said Codemasters CEO Rod Cousens. "We hope to welcome more than 40 people to our company and we have enjoyed the full cooperation of our friends at Sega in making this happen. It is good business for Codemasters, an exciting prospect and there will be more to come as we are not content to stand still."
Codemasters, based in Warwickshire, U.K., is already well-established as a developer of racing games, having created the popular Colin McRae Rally, TOCA Touring Car and Micro Machines game franchises. The takeover of Sega Racing Studio is effective immediately.