Yes they we hired by DICE and worked with them to develop BF2 however when EA started making inroads to buy DICE I think they were told to move and work in Sweden or leave and stay in good old blighty.
They decided to stay here thus leaving DICE. THQ snapped them up and setup up and new studio (KAOS)
Well that’s the general jist of if from what I understand mostly hearsay so may not be factually correct.