Home Big Data Atari agrees to purchase traditional recreation maker Digital Eclipse for as much as $20M

Atari agrees to purchase traditional recreation maker Digital Eclipse for as much as $20M

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Atari agrees to purchase traditional recreation maker Digital Eclipse for as much as $20M

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Atari has agreed to purchase traditional online game maker Digital Eclipse for as much as $20 million in money and inventory.

The deal contains $6.5 million up entrance in money and inventory in addition to a possible bonus of $13.5 million over 10 years.

Atari is already the proprietor of a few of the world’s most iconic client manufacturers and interactive leisure reminiscent of Pong and Breakout. And now it’s choosing up Digital Eclipse Leisure Companions Co. (“Digital Eclipse”), a recreation improvement studio initially based in 1992.

Emeryville, California-based Digital Eclipse is targeted on the digital restoration of traditional video video games.

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The acquisition of Digital Eclipse will permit Atari to develop its inner improvement capabilities and make the most of Digital Eclipse’s industry-leading expertise and proprietary expertise. In becoming a member of Atari, Digital Eclipse will develop its enterprise and capabilities by increasing its improvement capability and entry to world-class mental property and can leverage Atari’s administration experience.

By including Digital Eclipse, together with Nightdive Studios in Could 2023, Atari will have the ability to additional assist its retro-focused development technique.

Digital Eclipse is devoted to preserving gaming’s heritage and telling the tales of gaming historical past by archival releases and interactive documentaries. Digital Eclipse pioneered business online game emulation nicely earlier than it was a family idea and right now Digital Eclipse is one in all a choose few improvement studios acknowledged as leaders in retro-focused improvement.

Digital Eclipse video games embrace Avenue Fighter: thirtieth Anniversary, Mega Man Legacy Assortment, SNK fortieth Anniversary Assortment, Teenage Mutant Ninja Turtles: The Cowabunga Assortment and Disney Traditional Video games Assortment, which all offered thousands and thousands of models and have been critically acclaimed. Extra not too long ago, Digital Eclipse developed the Atari 50: The Anniversary Assortment which has been labeled because the “new gold commonplace” for video games compilations and was one of many highest rated titles of 2022.

Digital Eclipse’s most up-to-date tasks embrace the launch of The Making of Karateka and Wizardry: Proving Grounds of the Mad Overlord in Early Entry on Steam.

Since inception, Digital Eclipse has produced over 250 video games and developed long-standing relationships with main publishing and improvement companions within the {industry} to ship superb video video games and collections. With its revolutionary proprietary expertise, Digital Eclipse is now main this class in gross sales, important reception and innovation.

Atari 50 marks the 50th anniversary of Atari.
Atari 50 marks the fiftieth anniversary of Atari.

Wade Rosen, chairman and CEO of Atari, mentioned in a press release, “Digital Eclipse is one of the best on this planet at what they do. They’ve a deep love and respect for the historical past of the video games {industry}, and are famend for growing critically acclaimed tasks primarily based on historic franchises. Digital Eclipse, together with Nightdive, are in good alignment with Atari’s DNA and renewed function. I’m personally excited to see the place we will push the boundaries of retro innovation collectively.”

Andrew Ayre, CEO of Digital Eclipse, mentioned in a press release, “Atari and Digital Eclipse share the identical ethos in relation to celebration and preservation of gaming historical past. It’s an thrilling mixture, and I’m assured this can serve Digital Eclipse and our followers extraordinarily nicely as we develop our enterprise and develop our capabilities.”

Mike Mika, president and artistic director added, “Our expertise collaborating on Atari 50: The Anniversary Celebration was revelatory. The belief that Atari confirmed our staff, and our clear mutual love and respect for the content material, positioned us to supply one thing actually exceptional. I do know Atari will proceed to champion our strategy and that we’ll be bringing followers thrilling new tasks for years to come back.”

Monetary phrases

The acquisition value of Digital Eclipse will include an preliminary consideration of $6.5 million payable on the closing of the acquisition, of which $4 million shall be in money $2.5 million in newly issued Atari bizarre shares, in addition to a remaining earn-out of as much as $13.5 million, payable in money over the subsequent ten years primarily based on future efficiency of Digital Eclipse.

It’s anticipated that the acquisition of Digital Eclipse shall be accomplished within the coming days.

Along with the money consideration, Atari may even purchase a portion of the shares in Digital Eclipse immediately and the acquisition value of such shares similar to $2.5 million shall be paid by the use of set-off in opposition to the issuance of newly issued Atari SA shares.

The reserved capital improve will outcome within the issuance of 20,165,794 new Atari shares. In consequence, Digital Eclipse shareholders will collectively maintain upon completion of the capital improve 4.6% of Atari’s share capital. The willpower of the variety of Atari shares to be issued is predicated on the 20-day quantity weighted common value of Atari shares on Euronext Development Paris till the signing date of the acquisition settlement of €0.1169, in accordance with the phrases of the delegation to the board of administrators.

Nearly all of Digital Eclipse shareholders, holding in mixture roughly 95% of Digital Eclipse capital, have agreed to a 1-year lock-up on their Atari shares as from the closing of the acquisition.

Atari shares are listed in France on Euronext Development Paris (ISIN Code FR0010478248, Ticker ALATA) and OTC Pink Present (Ticker PONGF).

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