A press release to Yahoo! Finance has announced that Atari plans to buy Nightdive Studios in a deal that includes cash, stock shares, and earn-out options spanning the next three years. Nightdive Studios has been somewhat regularly in the news over the last couple of years with various updates about its System Shock Remake project whose release was recently delayed to May. Nightdive Studios has also largely been known for using its KEX engine to update classic, retro, games so they can be played on modern hardware.
Night Dive Studios CEO & Founder Stephen Kick and Director of Business Development Larry Kuperman said that “Night Dive and Atari have a long history together and we know that Atari shares our passion for retro games and our focus on producing high-quality new and remastered games that do justice to the original IP. As we look to grow our business and expand our capabilities, we could think of no better long-term partner than Atari.”
This is a big win for our team! As we look to continue producing high-quality, new, and remastered games that do justice to the original IP; we could think of no better long-term partner than @atari https://t.co/icK4zbQBe2
— Nightdive Studios (@NightdiveStudio) March 23, 2023
Wade Rosen (Chairman and CEO of Atari) said that “Night Dive’s proven expertise and successful track record in commercializing retro IP is well-aligned with Atari’s strategy and I am confident that their combined talent, technology, and IP portfolio will contribute to Atari’s future success.”
Meanwhile, the current version of Atari has crossed into a wide range of business ventures spanning Atari-themed hotels, revenue generation from blockchain offerings, attempts to release its Atari VCS, and promoting its 50th anniversary.
Deal Details
The acquisition is expected to be completed in April 2023 and will consist of Atari paying half of the $10 million in cash and the other half in Atari shares at closing. Atari is also offering an earn-out option of up to $10 million that will be payable over the next three years depending on the performance of Night Dive and also intends to issue €30 million in Convertible Bonds at a public offering in France to help finance the deal.
Press Release:
“Atari enters into an agreement to acquire Night Dive Studios and announces its intention to proceed with the issuance of €30 M bonds convertible into new Atari shares
PARIS, FRANCE (March 22, 2023 – 11.00 pm CET) – Atari® (the “Company”) — one of the world’s most iconic consumer brands and interactive entertainment producers — announced that it has entered into an agreement to acquire 100% of Night Dive Studios Inc. (“Night Dive”), a full service game development and publishing company based in Vancouver, Washington, USA.
In addition, Atari, SA also announced that it intends to proceed in the near-term with a €30 million bond issue convertible into new shares of Atari (the “Convertible Bonds”) in order to meet with its capital needs in the context of the implementation of its new growth strategy and refinancing of its debt.“