Eidos to recommend shareholders accept the £84 million offer.
Japanese video game publisher Square Enix has made an offer for British publisher Eidos estimated to be £84 million, a figure that represents a 129 per cent premium on Eidos' current market value.
Square Enix president Yoichi Wada said of the offer: "Eidos is a talented developer and publisher of interactive entertainment products with a broad portfolio of highly successful mass market franchises, led by Tomb Raider, one of the most successful videogame franchises of all time.
"Eidos maintains a strong reputation for high quality development and proven expertise in creating characters and storylines that appeal to consumers. Eidos' products are highly complementary to our business and will accelerate our aggressive expansion into Western markets. We believe that wide range of both companies' quality products encompassing major genres will enable us to meet diversified customers' expectations upon a global basis."
The Eidos board has stated it believes it is in the best interest of its shareholders to accept the offer made by Square Enix.
Eidos chairman Tim Ryan commented: "We believe that this cash offer provides Eidos Shareholders with an attractive price and certainty in today's challenging market backdrop and economic outlook."
Should the offer be accepted it would see the likes of Tomb Raider and Deus Ex join Square's monster RPG franchises Final Fantasy and Dragon Quest.
More details are expected to be posted in early March.