Atari has announced that it has entered into an agreement to acquire Digital Eclipse, “a game development studio originally founded in 1992 focused on the digital restoration of classic video games, based in Emeryville, California.”
This acquisition is aimed to help Atari’s “retro-focused growth strategy” prosper alongside NightDive Studios. Digital Eclipse is well-known in several crowds for its “commercial video game emulation.” Some notable recent releases from the company include Street Fighter: 30th Anniversary, Mega Man Legacy Collection, SNK 40th Anniversary Collection, Teenage Mutant Ninja Turtles: The Cowabunga Collection, and Disney Classic Games Collection.
Specifically regarding Atari, Digital Eclipse crafted Atari 50: The Anniversary Collection.
Wade Rosen, Chairman and CEO of Atari, said the following:
“Digital Eclipse is the best in the world at what they do. They have a deep love and respect for the history of the games industry, and are renowned for developing critically acclaimed projects based on historic franchises. Digital Eclipse, along with Nightdive, are in perfect alignment with Atari’s DNA and renewed purpose. I’m personally excited to see where we can push the boundaries of retro innovation together.”
Andrew Ayre, Chief Executive Officer, stated the following:
“Atari and Digital Eclipse share the same ethos when it comes to celebration and preservation of gaming history. It’s an exciting combination, and I am confident this will serve Digital Eclipse and our fans extremely well as we grow our business and expand our capabilities.”
Mike Mika, President and Creative Director, stated the following:
“Our experience collaborating on Atari 50: The Anniversary Celebration was revelatory. The trust that Atari showed our team, and our clear mutual love and respect for the content, positioned us to produce something truly remarkable. I know Atari will continue to champion our approach and that we will be bringing fans exciting new projects for years to come.”
The acquisition is expected to be completed in “the coming days,” comprised of “an initial consideration of US$6.5 million payable at the closing of the acquisition, of which (i) US$4.0 million in cash1 and (ii) US$2.5 million in newly issued Atari ordinary shares2, as well as a remaining earn-out of up to $13.5 million, payable in cash over the next ten years based on future performance of Digital Eclipse.”
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