Published , by Sam Chandler
Published , by Sam Chandler
Atari has announced an agreement to acquire Nightdive Studios in a deal potentially worth $20 million. Both companies have a history of work in the retro game and video game preservation arena, which makes this acquisition a logical one.
Atari announced on March 22, 2023 that it has entered in to an agreement for the acquisition of Nightdive Studios. The purchase of Nightdive will involve a few instances of payment. An initial consideration of $10 million USD will be payable half in cash and the other half in Atari shares at the closing of the acquisition. The Yahoo Finance story notes that there is “an earn-out of up to $10 million USD, payable over the next three years based on the future performance of Nightdive.” This indicates that the acquisition could be as little as $10 million with a potential to reach $20 million. Atari is also set to issue €30 million bonds convertible into new Atari shares.
Atari’s acquisition of Nightdive further continues the company’s focus on retro games. “Nightdive’s proven expertise and successful track record in commercializing retro IP is well-aligned with Atari’s strategy,” said Wade Rosen, Chairman and CEO of Atari. “I am confident that their combined talent, technology and IP portfolio will contribute to Atari’s future success.”
Nightdive is known for its work in bringing retro games to a modern audience. The company has a wealth of published titles and has its KEX engine, a proprietary tool, which enables it to redevelop retro games and have them work on modern systems. Its upcoming remake of System Shock is eagerly anticipated.