European game publisher Infogrames has gobbled up the last scraps of their misbehaving adopted love child, Atari.
By buying up all outstanding shares of Atari stock, Infogrames has completely absorbed a company they already controlled as their American distribution arm. The move comes in the middle of disastrous financial times for Atari, which recently stopped developing its own titles in favor of full-time distribution.
Under the terms of the 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 canceled) for $1.68 per share, equaling $11 million. Infogrames is already the majority shareholder in Atari holding over 51 percent of its shares. Atari will be a wholly-owned subsidiary of Infogrames.
This agreement is an essential and positive development for Infogrames and its shareholders. It brings Atari fully under the control of Infogrames, delivering a platform for future growth in the US. This step closely follows a series of recent major restructuring actions implemented in an effort to reposition Atari, streamline its corporate structure and reduce its annualized costs, including costs related to being a US public company.
“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,” said David Gardner, CEO of Infogrames. “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.”
Jim Wilson, Atari’s CEO will transition over to Infogrames.
“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,” he said.
Under the terms of the deal, Infogrames is also lending Atari $20 million to fund operations.