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THQ to acquire Relic

Buyout of Canadian developer bulks up internal product development capacity.

Publisher THQ has signed a deal which will see the it acquiring Vancouver based development studio Relic Entertainment, which is currently working on Warhammer 40,000: Dawn of War for the company.

Details of the agreement have not been revealed, although in a departure from the normal terms of such acquisitions, the companies have stated that it is an all-cash transaction. In general when a publisher buys a developer, the transaction is based on shares, not cash.

Relic is best known for its debut title, Homeworld, and also has sequel Homeworld 2 and the quirky if underperforming Impossible Creatures under its belt. The company had previously signed a two-property, multi-year publishing deal with THQ, and is working on Warhammer 40,000: Dawn of War, for release later this year.

"The Relic acquisition underscores THQ's strategy to acquire development studios with a proven ability to create the highest quality products," according to THQ worldwide studios executive VP Jack Sorensen. "We are confident that Relic's extremely talented teams of designers, programmers and artists will solidify THQ's position as a leading publisher of PC and console entertainment."

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