Electronic Arts outbids Take-Two with $1.2 billion deal for Codemasters

An Electronic Arts office is shown in Los Angeles, California, U.S., July 27, 2020. REUTERS/Mike Blake

(Reuters) - Video games maker Electronic Arts said on Monday it had reached an agreement to buy Codemasters in a deal worth $1.2 billion, trumping an earlier agreement between the British company and rival Take-Two Interactive Software.

Shares in London-listed Codemasters surged 18.7% to 637.84 pence by 0845 GMT - above the 604 pence per share offered to the company's shareholders by EA.