In April 2023, Atari will complete its acquisition of Nightdive Studios, a full-service development and publishing company with expertise in restoring and publishing classic video games. The acquisition will enable Atari to enrich its large library of owned franchises, leverage Nightdive’s proprietary technology, and use the studio’s publishing capabilities to support its retro-focused growth strategy. Let’s take a look at the benefits of Atari’s acquisition of Nightdive Studios, including Nightdive’s expertise in restoring classic video games, diversified portfolio of titles, and proprietary KEX engine.
It also provides details about the terms and timing of the acquisition, financing involved, and some of the classic video games remastered by Nightdive Studios.
Atari’s Acquisition of Nightdive Studios
Atari’s acquisition of Nightdive Studios has been making headlines in the gaming industry, and for good reason. The acquisition, expected to be completed in April 2023, will enable Atari to enrich its large library of owned franchises and support its retro-focused growth strategy.
About Nightdive Studios
Nightdive Studios is a full-service development and publishing company with expertise in restoring, optimizing, and publishing classic video games. Its portfolio of titles includes over 100 classic video games, such as System Shock, DOOM 64, and Quake. Led by industry veterans Stephen Kick and Larry Kuperman, Nightdive has garnered critical acclaim for its releases of seminal industry and fan-favorite titles.
Nightdive’s most recent project is a remastered version of classic first-person shooter game System Shock, which is one of the most-anticipated retro releases of 2023. System Shock is now available for pre-order on Steam, GOG, and Epic Games.
KEX Engine
One of the keys to Nightdive’s success is its proprietary KEX engine, which makes classic games playable on modern hardware and gives the studio the ability to enhance and improve upon the original to meet contemporary players’ expectations. Nightdive’s reputation and deep industry knowledge have made it a go-to partner for some of the largest names in gaming and media and allowed it to develop a diversified portfolio of titles.
For the fiscal year ended December 2022, Nightdive reported revenue of approximately US$3.0 million. The founders own 87% of the company’s shares while Wade Rosen, Chairman and CEO of Atari, owns a minority stake of 13%.
Acquisition detaitls
The acquisition has been approved unanimously by the disinterested members of the board of Atari, with Wade Rosen not participating in the vote. Rosen commented that “Nightdive’s proven expertise and successful track record in commercializing 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.”
The purchase price of Nightdive will consist of an initial consideration of US$10 million payable half in cash and half in Atari shares at the closing of the acquisition plus an earn-out of up to US$10 million, payable in cash over the next three years based on the future performance of Nightdive.
The financing of the acquisition involves bridge financing provided by Irata LLC and the issuance of €30 million in Convertible Bonds through a public offering in France. The Convertible Bonds will be issued with a priority subscription period for all shareholders for a period of three trading days through a public offering in France, and Irata LLC has indicated that it intends to subscribe its prorata share and to provide a firm underwriting for a number of Convertible Bonds equal to at least 75% of the total amount of the offering.
The amount raised through the Convertible Bonds will mainly be used to reimburse the bridge financing provided by Irata in the context of the acquisition, finance future potential acquisitions Atari may consider, invest in growth initiatives, reimburse shareholder loans granted by Irata, and provide general cash requirements and financial flexibility necessary to pursue the transformation plan.
Nightdive ports
Nightdive Studios has previously helped to bring several classic games to Switch, including Quake, Doom 64, the Turok titles, and more. With its deep expertise in restoring, optimizing, and publishing classic video games, Nightdive’s acquisition by Atari will enable Atari to leverage Nightdive’s proprietary technology and publishing capabilities to support its retro-focused growth strategy.
Conlusion
In conclusion, Atari’s acquisition of Nightdive Studios is a strategic move that will enable Atari to enrich its large library of owned franchises and support its retro-focused growth strategy. Nightdive Studios’ reputation and deep industry knowledge, combined with Atari’s expertise and resources, will contribute to Atari’s future success and allow it to continue to produce high-quality new and remastered games that do justice to the original IP.
FAQs:
- What is Nightdive Studios?
- Nightdive Studios is a full-service development and publishing company with expertise in restoring, optimizing, and publishing classic video games.
- What is Atari’s retro-focused growth strategy?
- Atari’s retro-focused growth strategy involves leveraging its large library of owned franchises and producing high-quality new and remastered games that do justice to the original IP.
- What is Nightdive Studios’ revenue for FY2022?
- Nightdive Studios’ revenue for FY2022 is approximately US$3.0 million.
- What is Nightdive Studios’ proprietary KEX engine?
- Nightdive Studios’ proprietary KEX engine makes classic games playable on modern hardware and gives the studio the ability to enhance and improve upon the original to meet contemporary players’ expectations.
- What classic video games has Nightdive Studios remastered?
- Nightdive Studios has remastered several classic video games, including System Shock, DOOM 64, and Quake.
