Warwickshire-based Codemasters - the largest independent computer game developer in Europe - is set for a £350 million stock market flotation after being acquired by a venture capital firm.
Founders David and Richard Darling and their father Jim have sold their final stake, of approximately 25 per cent, to existing majority shareholder Balderton Capital.
The value of the deal was undisclosed, although it is believed to run into tens of millions of pounds.
Industry sources suggest Balderton will now look to float the company in London or New York within the next six to 12 months.
But Ynon Kreiz, general partner of Balderton Capital and a board member of Codemasters for the past two-and-a-half years, said he could not comment on the speculation.
He said: "I can neither confirm nor deny the reports that we intend to float Codemasters.
"The company is in a strong position and, when the time is right, we will consider the options.
"Naturally we're looking to make a good investment and, over time, we have to sell our companies, but we do take a long-term view."
Balderton also confirmed that Goldman Sachs has provided £50 million to support the company's growth plans in return for an undisclosed minority shareholding.
Rod Cousens, chief executive of Codemasters, said: "This new investment heralds the next stage for Codemasters as it realises its ambitions to be a global player, readying itself for the digital age.
"For more than 20 years, Jim, David and Richard built Codemasters to become one of the video game industry's great British success stories. They brought enjoyment to many and made a valuable contribution to the industry as a whole."
David Darling confirmed he was currently working on some "exciting ideas" and planned to launch a new business in a few months.
Codemasters, which employs 400 at its offices in Leamington Spa, said its headquarters would remain in the town and there were no plans to cut staff.
In the year to June 2006 the firm saw profit of £1 million on turnover of £52 million. This year it expects sales to increase to £75 million and reports suggest Balderton aims to take this to £150 million in 2007/08.
Balderton, formerly known as Benchmark Capital Europe, first invested in Codemasters in 2005, taking a 40 per cent stake, and bought a further 30 per cent in 2006.
The acquisition follows Balderton's strategy of acquiring large stakes in technology and media companies including social networking website Bebo, online gaming Betfair, open source database MySQL and Setanta Sports.
Mr Kreiz said: "Codemasters is now fully funded and ready for its next stage of growth, with a great pipeline of new products and a world-class management in place. We are grateful for the contribution made by Jim, David and Richard and the key role they played to position the company for the future."
Founded by the Darling family in 1986, Codemasters is now a leading developer and publisher of critically acclaimed video games, many of which are based on industry-leading sports and entertainment properties.
In January 2006, Chris Deering, the former president of Sony Europe, consumer electronics division, and chairman and CEO Sony Computer Entertainment Europe, was appointed non-executive Chairman.
In April, the company launched The Lord of the Rings Online: Shadows of Angmar, a multiplayer online title, which became a top selling PC game throughout Europe.
In April, Warner Bros Home Entertainment began distributing Codemasters titles throughout the US.
* Codemasters was founded by brothers David and Richard Darling in 1986, with support from their father Jim.
* The brothers had started development in their teens, creating games for the Commodore 64.
* The first game Codemasters produced was the BMX Simulator which the brothers developed, along with many that followed, from their home.
* Codemasters established itself as a developer of games for the ZX Spectrum, which included the immensely popular Dizzy series of games.
* The company has produced more than 60 games that have topped the charts in the UK including LMA Manager series and Brian Lara Cricket.
* In July 2005 the firm launched its online gaming arm, which it believes will be a significant contributor to future sales.
* On June 1, the company announced a complete re-brand with the launch of a new logo.