Atari is now a wholly owned subsidiary of Infogrames. The acquisition will enable Atari to expand its distribution capabilities and online initiatives.
by James Brightman on Monday, October 13, 2008
Infogrames' plan to buy the outstanding stock in Atari, first revealed back in March, is finally complete. The French publisher now owns all of Atari, as compared with 51.4 percent before the acquisition.
Infogrames paid $1.68 per share for all outstanding shares of Atari common stock. The transaction is valued at about $11 million and is being funded by Infogrames from existing cash resources. As part of the deal, Atari's existing management – Jim Wilson (President and CEO), Tim Flynn (Senior Vice President of Sales), and Jeff Reese (Vice President of Marketing) – has joined the Infogrames group. They will continue to focus on growing the North American gaming market.
"The completion of this merger is an important step in the implementation of our strategy. Reshaping U.S. operations was a key element of our 'Atari transformation' plan," said David Gardner, CEO of Infogrames. "Profitable first quarter results were reached thanks to the tremendous work accomplished by Jim and his team. The completion of the merger creates a simplified efficient global structure that we anticipate will generate greater opportunities to expand U.S. distribution capabilities and strengthen our platform for global online initiatives."
For more on Atari's plans, check out our Jim Wilson interview from this summervia GameDaily
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