Infogrames to fully acquire Atari Inc for $11 million

Atari Inc is set to become a wholly-owned subsidiary of Infogrames, buying up the remainder of the US firm’s stock for $11 million.

Infogrames is currently the US company’s largest stockholder, and originally made an offer to fully purchase the business in early March.

Atari Inc then asked to extend of the original March 11th deadline to decide whether or not to accept the offer. The official closing of the transaction is expect in the third quarter of calendar year 2008.

As well as snapping up all outstanding shares of Atari Inc, Infogrames has also committed to lending the company $20 million, which will be used to fund operational cash requirements during the interim period of the acquisition.

"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."

Infogrames last month confirmed that it was the ‘mystery bidder’ that made an acquisitive offer for SCi.

Atari Inc is now headed up by Jim Wilson, who took over as CEO on April 1st.