Atari has officially entered into an agreement to acquire Nightdive Studios, a Vancouver-based game developer most known for its raft of modern remasters and re-releases of classic PC games. Currently, the company is on the cusp of releasing a major remake of beloved sci-fi-horror adventure, System Shock, and plans to launch future games in the series.
Beyond this franchise, Nightdive is known for its expertise in retro IP, and has re-released countless classic games, including titles from the Humongous Entertainment collection, and other games like Turok, Doom 64, Shadow Man, Quake and more.
It appears the agreement to acquire the studio was made for US $10 million payable half in cash, and half in Atari shares, with an additional US $10 million payable in cash over the next three years, based on the ‘future performance’ of Nightdive. As a result of this deal, Atari will issue €30 million in convertible bonds – a bond which may be converted to shares or stock – for all existing company shareholders.
According to Atari chairman and CEO Wade Rosen, the acquisition makes perfect sense – as it aligns with Atari’s focus on classic games.
‘Nightdive’s proven expertise and successful track record in commercialising 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,’ Rosen said of the acquisition in a press release.
Stephen Kick and Larry Kuperman, principals of Nightdive shared similar sentiments.
‘Nightdive 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,’ the pair said in a joint statement. ‘As we look to grow our business and expand our capabilities, we could think of no better long-term partner than Atari.’
This deal will seemingly have an extremely short turnaround time, as it’s expected to be finalised by April 2023.