- French-based publisher Infogrames today announced that it has formed a definitive pact with Atari to merge. Reached to the tune of $11 million dollars, the agreement gives Infogrames complete control over Atari.
"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 Infogrames CEO David Gardner
"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," he added.
As part of the deal, Infogrames has agreed to lend Atart $20 million in funding to cover capital requirements. The publisher expects to close and seal the merger deal in the third quarter of 2008.
Press Release: Infogrames Entertainment S.A. and Atari, Inc. Announce Agreement to Merge
LYON, France and NEW YORK, April 30 – Infogrames Entertainment S.A. ("Infogrames" or "the Group") and Atari, Inc. (Nasdaq: ATAR) ("Atari") today announced that they have reached a definitive agreement to merge.
- brings to a close a period of financial underperformance for Atari;