Electronic Arts to buy UK’s Codemasters in deal worth $1.2 billion

(Reuters) -Computer games firm Electronic Arts (NASDAQ:EA) 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 (NASDAQ:TTWO) Interactive Software.

Under the deal, Codemasters shareholders will receive 604 pence per share, representing a premium of 13.1% to the last closing price of the company’s shares.

The deal price is also higher than the 485 pence per share Take-Two had offered for Codemasters last month.

Take-Two did not immediately respond to a request for comment.

Codemasters, which is known for its Formula One games for the Playstation 4, said its board considers the EA offer to be superior to the Take-Two proposal.