Atari enters agreement to acquire Nightdive Studios
For an initial consideration of $10m.
Atari has entered into an agreement to acquire 100 percent of Nightdive Studios, the company behind the upcoming System Shock remake.
In a press release, Atari stated the purchase price of Nightdive will consist of an initial consideration of $10m. This will be payable half in cash and half in Atari shares at the closing of the acquisition. As for that closure, the acquisition is expected to be completed sometime in April.
Atari additionally noted there will be an earn-out of up to $10m, payable in cash over the next three years based on the future performance of Nightdive.
On this acquisition, Atari chairman Wade Rosen commented: "Nightdive's proven expertise and successful track record in commercialising 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."
Nightdive's Stephen Kick and Larry Kuperman added: "Nightdive 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."
Their statement closed: "As we look to grow our business and expand our capabilities, we could think of no better long-term partner than Atari."
The press release stated this acquisition will enable Atari to "enrich its large library of owned IP" as well as meaning the company will be "able to leverage Night Dive's proprietary technology, and utilise Nightdive's publishing capabilities to support Atari's retro-focused growth strategy".
Atari's acquisition of Nightdive was "approved unanimously" by the "disinterested members of the board of Atari". Wade Rosen did not participate in the vote.
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