"The board firmly believes that shareholders' interests are best served by a sale of the company," John van Kuffeler, chairman of the board of Eidos, said in a statement.
Eidos said earlier this month that it had received an approach on March 2 about a possible offer at 53 pence per share.
The company said it needed a formal offer within a fortnight to satisfy the terms of a new 23 million pound loan from Royal Bank of Scotland.
Shares in Eidos hit a 10-year low on March 10 as delays to key new titles, tough terms on a bank loan and a first-half loss outweighed news of the takeover approach.
The company is perhaps best known for its Lara Croft Tomb Raider series of video games.
It posted a bigger-than-expected 26.5 million pounds operating loss before goodwill in the six months to December 31, on turnover down 60 percent to 31.5 million pounds.
The company has said it was hit particularly hard by weaker sales in its top market, the United States.
Elevation is led by six accomplished professionals:
- Fred Anderson (gormer EVP and CFO of Apple Computer)
- Marc Bodnick (founding principal of Silver Lake Partners)
- Roger McNamee (co-founder of Silver Lake Partners and Integral Capital Partners)
- Bret Pearlman ( former Senior Managing Director of The Blackstone Group)
- John Riccitiello (former President and COO of Electronic Arts)
- Bono (lead singer and co-founder of U2)