Codemasters announced today the signing of a deal with Sega. This agreement will see the British publisher take over the Sega Racing Studio in Solihull, central England. Sega announced earlier this month that they would be shutting down the studio, which had developed Sega Rally Revo.

"In seizing this opportunity, we have created additional resources to escalate our plans in the racing segment," said Rod Cousens, chief executive, Codemasters. "We hope to welcome more than 40 people to the company and we have enjoyed the full co-operation 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."