The acquisition will give Atari full ownership of the Nightdive's game catalog as well as the studio's proprietary KEX Engine, which allows retro games to be played on modern devices.
Nightdive Studios, the developer known for their retro remakes such as Doom 64 and Quake re-releases, which is also currently working on the System Shock remake, is set to be acquired by Atari.
The announcement was made via Yahoo! Finance, with the acquisition scheduled to be finalized by April 2023.
According to the press release, the acquisition cost will comprise an initial payment of $10 million and an earn-out of up to $10 million that will be paid in cash over the next three years, depending on Nightdive's future performance. It's worth noting that Atari's CEO and Chairman, Wade Rosen, previously held a 13% minority stake in Nightdive Studios.
The acquisition of Nightdive Studios will grant Atari complete ownership of Nightdive's entire game catalog, in addition to its proprietary KEX Engine, which enables retro games to be played on modern devices. Additionally, Atari intends to leverage Nightdive's publishing capabilities to facilitate its own growth strategy that focuses on retro gaming.
Nightdive's CEO Stephen Kick and Director of Business Development Larry Kuperman expressed their belief that the collaboration with Atari is perfect for the studio, as both companies have a common interest in developing top-quality new and remastered retro games.
"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," Nitedive's principals said.
"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," Atari's Wade Rosen commented.
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