As per the terms of the acquisition, Chair will become a wholly owned subsidiary of Epic, and will continue operation under the same name while continuing to focus on creating original game properties with Epic's Unreal Engine.

"Chair's stylized approach to creating games is further enhanced by their ability to stretch our technology in new directions that not only help in creating amazing gaming experiences but also demonstrate the power and versatility of the Unreal Engine," said Epic VP Mark Rein.

Founded in 2005, Chair was formed by several key staffers from developer GlyphX's Advent Rising (PC, Xbox) team. In addition to the 2007 release of Undertow, Chair also secured exclusive development rights to adapt Orson Scott Card's classic sci-fi series Ender's Game to interactive mediums earlier this year.