![]() The company is focused on obtaining rights to abandoned old games and re-releasing them on modern digital stores.Night Dive Studios was founded in 2012 by Stephen and Alix Kick, who previously worked as artists at Sony Online Entertainment (now Daybreak Game Company).Night Dive Studios also noted that they “could think of no better long-term partner than Atari” considering the team wants to keep producing new and remastered titles based on classic IPs.On top of that, Atari wants to utilize Night Dive’s expertise in publishing, optimizing, and restoring classic games.According to Atari CEO Wade Rosen, who already owns a 13% stake in the studio, Night Dive’s “proven expertise and successful track record in commercializing retro IP is well-aligned with Atari’s strategy.”.With this acquisition, Atari wants to leverage Night Dive’s proprietary KEX engine, which was built specifically for making retro-themed games.Why is Atari acquiring Night Dive Studios? The company also plans to use the amount raised to invest in the development of more than 12 games expected to come out in the next 18 months, as well as fund its future potential acquisitions.To compensate for this financing, Atari will raise €30 million through issuing convertible bonds. Holding company Irata, which is the main shareholder of Atari, will provide it with bridge financing for the initial payment of $5 million.The acquisition is expected to close in April 2023.The deal also includes a potential earn-out of up to $10 million in cash over the next three years based on the studio’s future performance. ![]() According to the financial terms of the Night Dive acquisition, Atari will pay $10 million half in cash and half in its shares.
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