By Lisa Kerner
Charlotte, N.C., April 30 - Infogrames Entertainment SA and Atari, Inc. agreed to merge in a transaction valued at about $11 million, or $1.68 per share.
On March 7, Atari announced it had received a non-binding expression of intent from Infogrames to acquire all of Atari's outstanding common stock that it does not already own.
Infogrames, with a 51.4% ownership interest in Atari, will fund the transaction using existing cash resources, an Atari news release said.
In addition, Infogrames agreed to lend Atari $20 million to fund its operational cash requirements prior to the transaction's close in the third quarter of 2008.
"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," Infogrames chief executive officer David Gardner said in the release.
Atari president and CEO Jim Wilson will join Infogrames following the merger's close.
"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," Wilson stated.
Atari is a New York-based interactive entertainment software company.
Lyon, France-based Infogrames is the parent company of Atari and Atari Europe.
| Acquirer: | Infogrames Entertainment SA
|
| Target: | Atari, Inc.
|
| Announcement date: | April 30
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| Transaction total: | $11 million
|
| Price per share: | $1.68
|
| Expected closing: | Third quarter of 2008
|
| Stock price of target: | Nasdaq: ATAR: $1.58 on April 29
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