April 25^th, 2008 (9:40am) - Two weeks ago it had been reported that SEGA had closed the doors on its UK Racing Studio, the developer behind SEGA Rally 2008 for the Xbox 360 and PlayStation 3, however a new report has revealed that Codemasters, a publisher known for its emphasis on creating racing games, has bought the studio, adding it to its growing lineup of talented in-house development studios.

"In seizing this opportunity, we have created additional resources to escalate our plans in the racing segment," said Rod Cousens, CEO of 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."

This acquisition will add forty new employees to the company, increasing the size of those on payroll past three-hundred and fifty strong.