Maybe this news will pull your sweaty hands away from whatever system you’re currently using to play GTA IV: Infogrames, after a failed bid to buy SCi, has managed to wrap Atari in its corporate tendrils. Before this agreement, Infogrames was already the majority stakeholder of Atari, and for a purchase price of a low low $11 million, Infogrames is able to bring the U.S. corporation fully into the fold.
Ever since Phil Harrison moved over to Infogrames, big things have been afoot for the company. They have been bobbing and weaving, trying to acquire other studios and publishers in an effort to solidify the corporate offering. The details of the merger are as follows:
Under the terms of the merger agreement, Infogrames will acquire the remaining outstanding equity interests of Atari (other than shares of common stock held by Infogrames or its affiliates, which would be cancelled) for US$1.68 per share, equivalent to a cash payment of approximately US$11 million. Infogrames is currently the majority shareholder in Atari holding approximately 51.4%. Following the merger, Atari will be a wholly- owned subsidiary of Infogrames. The merger will be funded by Infogrames from existing cash resources. The transaction is not subject to any financing conditions and is expected to close in the third calendar quarter of 2008.
As the victor in the merger war, David Gardner, CEO of Infogrames is understandably optimistic on the move:
“Bringing Atari US and Infogrames businesses together will enable us to create a simplified global structure for our business as we seek to re-build a well-managed, cohesive and financially disciplined company. This is a key strategic event for Infogrames that will benefit all of our shareholders. I believe that this transaction will generate significant benefits for the Group.”
But how does the freshly minted President and CEO of Atari, Inc. feel? Jim Wilson feels that Atari is well-positioned now to become a strong contender in the North American market:
“By joining Infogrames, we will have the opportunity to further transform Atari. As part of this newly integrated company, we will be better able to streamline operations and have a stronger platform for growth in North America.”
I can only hope that means we see more quality games coming out of Atari. More Witchers and fewer Dragon Ball Z games.
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