Atari closes the acquisition of Digital Eclipse

Atari closes the acquisition of Digital Eclipse

        
PARIS, FRANCE (November 6, 2023 - 8.00 am CET) - Atari (the “Company”) — one of the world's most iconic consumer brands and interactive entertainment producers — is pleased to announce the closing of the acquisition of Digital Eclipse Entertainment Partners Co (“Digital Eclipse”), a game development studio originally founded in 1992 focused on the digital restoration of classic video games, based in Emeryville, California.

The acquisition of Digital Eclipse will allow Atari to expand its internal development capabilities and utilize Digital Eclipse’s industry-leading experience and proprietary technology. In joining Atari, Digital Eclipse will grow its business and capabilities by expanding its development capacity and access to world-class IP and will leverage Atari’s management expertise.

FINAL TERMS OF THE ACQUISITION AND COMPLETION OF CAPITAL INCREASE

The final purchase price of Digital Eclipse consists of an initial consideration of US$6.3 million, of which (i) US$3.8 million in cash¹ paid on the closing date and (ii) US$2.5 million in newly issued Atari ordinary shares issued on the closing date², as well as a remaining earn-out of up to $13.5 million, payable in cash over the next ten years based on future performance of Digital Eclipse.

As described above, Atari has also acquired a portion of the shares in Digital Eclipse directly with the issuance of newly issued ordinary Atari shares. The reserved capital increase has resulted in the issuance of 20,165,794 new ordinary shares with a par value of €0.01, plus a share premium of €0.1069, representing a total subscription of €2,357,381.82. Atari share capital increased by a nominal amount of €201,657.94 from €4,221,964.28 to €4,423,622.22.

Following the completion of the acquisition, Digital Eclipse shareholders together hold 4.6% of Atari’s share capital³. The majority of Digital Eclipse shareholders, holding in aggregate approximately 95% of Digital Eclipse capital, have agreed to a 1-year lock-up on their Atari shares as from the closing of the acquisition.

About ATARI

Atari is an interactive entertainment company and an iconic gaming industry brand that transcends generations and audiences. The company is globally recognized for its multi-platform, interactive entertainment and licensed products. Atari owns and/or manages a portfolio of more than 200 unique games and franchises, including world-renowned brands like Asteroids, Centipede, Missile Command, Pong, and RollerCoaster Tycoon. Atari has offices in New York and Paris. Visit us online at www.atari.com.