Phil Elliott
04:28 (BST)
11/10/2008
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Infogrames completes Atari Inc acquisition
Infogrames has announced that it has completed the deal to buy Atari Inc, the US-based publisher, in a deal worth around USD 11 million.
The French company, which earlier this year surprised many by appointing former EA executive David Gardner as CEO and former Sony Worldwide Studios boss Phil Harrison as president, can now definitively unite the Atari brand, the use of which Infogrames has had the right to in Europe and other parts of the world for some time.
Lyon-based Infogrames previously owned 51.4 per cent of Atari Inc's stock and the merger, initially agreed on April 30 this year, completed on a base price of USD 1.68 per outstanding share.
Atari Inc's former management team of Jim Wilson, Tim Flynn and Jeff Reese will remain with the company to focus on growing the historically-troubled Atari brand in North America under Gardner's new vision.
Infogrames also outlined the strategy that the combined company will follow moving forwards under its new "simplified global structure":
- Reduce general and administrative expenses, including costs related to being a US public company, and generate economies of scale
- Provide greater opportunities to develop the US distribution business and find new partnerships
- Strengthen the US online platform to develop online operations
Shares in Infogrames initially jumped around 15 per cent on the initial announcement on Thursday, although the volatile market conditions saw the price fluctuate wildly before finishing the week down on EUR 7.07.
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