NEW YORK, May 15, 2023 [crocon media – dgoldsmith] PARIS, FRANCE – Atari®, one of the world’s most iconic consumer brands and interactive entertainment producers, has successfully completed the acquisition of Night Dive Studios Inc. (“Nightdive”), a US-based full service game development and publishing company. The acquisition was announced on March 22, 2023, and it marks a significant addition to Atari’s already impressive library of owned intellectual property.
Through this acquisition, Atari aims to further its retro-focused growth strategy by leveraging Nightdive’s proprietary technology and publishing capabilities. This partnership brings together two companies passionate about preserving and innovating in retro gaming.
Stephen Kick, CEO of Nightdive, has expressed excitement for the collaboration, stating that Atari’s support will foster growth and expansion for their business. Wade Rosen, Chairman and CEO of Atari, reciprocated the sentiment, expressing confidence in Nightdive’s talented team and looking forward to their upcoming releases.
The purchase of Nightdive came at a price of an initial US$9.5 million, which was split between cash (US$4.5m) and newly issued Atari shares (US$5.0m). There is also an earn-out of up to US$10 million, payable over the next three years based on Nightdive’s future performance.
The deal also resulted in Nightdive’s founders holding 7.9% of Atari’s share capital and 7.8% of its voting rights, while Wade Rosen now holds 27.7% of Atari’s share capital and 27.5% of its voting rights.
As part of the agreement, Nightdive’s founders have agreed to a 6-month lock-up on their Atari shares.
The cash portion of the purchase will be partially refinanced by the issuance of €30 million Convertible Bonds, announced in March 2023. The details of the bonds will be released in the coming weeks, subject to approval by the Autorité des marchés financiers (AMF).
The acquisition of Nightdive Studios represents a significant step forward for Atari in the realm of retro gaming and demonstrates the company’s commitment to growth and innovation in this field.
Read the original news release: https://ml-eu.globenewswire.com/Resource/Download/7b02cd42-67a3-4032-96af-35cbbd8a8803
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