Atari Signs $10 Million Acquisition Deal with Nightdive Studios

Key Highlights - Atari agrees to purchase Nightdive Studios for $10 million, with the transaction expected to be finalized next month - Nightdive may receive an additional $10 million in cash based on its performance over the next three years - Atari plans to issue €30 million in Convertible Bonds to facilitate further acquisitions and game development Atari has announced its intention to acquire Nightdive Studios, the renowned developer behind the remasters of classic games such as Quake, Shadowman, and System Shock. Upon completion of the acquisition, Nightdive will become a fully-owned subsidiary of Atari, with the latter paying $10 million for the purchase. The payment will be divided equally between cash and Atari shares, with the acquisition expected to close by the end of April. Nightdive's leaders, Stephen Kick and Larry Kuperman, stated: "Night Dive and Atari have a long-standing partnership, and we believe that Atari shares our passion for retro games and our commitment to producing high-quality new and remastered games that stay true to the original IP. As we look to expand our business and capabilities, we couldn't think of a better long-term partner than Atari." Currently, Nightdive is working on a remaster of System Shock 2, scheduled for release in 2023. In a previous interview, Kick discussed the art of remastering classic games and the importance of respecting the source material. Atari Chairman and CEO Wade Rosen, who holds a 13% minority stake in Nightdive, added: "Night Dive's expertise and successful track record in commercializing retro IP aligns well with Atari's strategy, and I am confident that their combined talent, technology, and IP portfolio will contribute to Atari's future success." Atari plans to utilize Nightdive's proprietary KEX engine and publishing capabilities to further its strategy of building its business around retro IP. In conjunction with the acquisition announcement, Atari revealed plans to issue €30 million in Convertible Bonds through a public offering in France. The raised funds will be used to reimburse investors, finance further game development, and potentially facilitate future acquisitions. Earlier this month, Atari launched a crowdfunding campaign via Fig, aiming to raise between $1 million and $15 million to finance the development of future games.