The deal was worth a staggering $1.2 billion and will see EA get access to a number of high profile racing IPs such as Dirt, Project Cars, Grid and Formula 1.
However, EA already has its fair share of racing titles, such as the Need for Speed franchise. Combined, the companies hope to usher in "an exciting new era for racing games."
"Today is a landmark in Codemasters' history and an exciting day for our employees and players," said Codemasters CEO Frank Sagnier.
"The partnership with EA will enable our teams to take our highly-acclaimed franchises to new heights and reach a huge global audience through their player network. Together we can redefine the landscape of racing games to create even more compelling experiences for racing fans around the world."
Round the track
With Codemasters on board, the American games behemoth is hoping to release racing games on a more regular basis.
"This is the beginning of an exciting new era for racing games and content as we bring together the talented teams at Electronic Arts and Codemasters," said Electronic Arts CEO Andrew Wilson.
"Racing fandom continues to grow worldwide, and the franchises in our combined portfolio will enable us to create innovative new experiences and bring more players into the excitement of cars and motorsport.
"Our teams will be a global powerhouse in racing entertainment, with amazing games for players on every platform, and we can't wait to get started."