Infogrames Entertainment and Atari today announced that they have reached a definitive agreement to merge.
Under the terms of the merger agreement, Infogrames will acquire the remaining outstanding equity interests of Atari. Infogrames is currently the majority shareholder in Atari holding approximately 51.4%. Following the merger, Atari will be a wholly-owned subsidiary of Infogrames.
David Gardner, CEO, Infogrames, said: "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. 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." It's easy to see why he's the CEO.
In connection with the transaction, Infogrames has committed to bail Atari out to the tune of US$20 million.