Infogrames to Acquire Rest of Atari for $11 Million

Authored by Mark Hefflinger on May 1, 2008 - 8:21am.

Lyon, France - Video game publisher Infogrames, the largest shareholder in New York-based Atari (NASD: ATAR), announced on Thursday that it will acquire the rest of the Atari's outstanding shares for $11 million, or $1.68 per share.

France-based Infogrames currently holds approximately 51.4% of Atari.

The company also said it will provide Atari with a loan of up to $20 million to cover costs until the deal closes, which is expected to happen in the third quarter.

"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."