Activision Inc is to acquire the Disc Company Inc subsidiary of International Consumer Technologies Corp under a deal in which Activision would issue common stock, common stock purchase warrants and non-voting preferred stock to International Consumer, which will end up with about 27.6% of the enlarged Activision; the preferred stock is to have a liquidation preference of about $25m and will be entitled to cumulative dividends at varying rates, and it will be required to be redeemed after five years; Disc is a Los Angeles-based company engaged in marketing and distributing computer software and related products and developing and publishing software products; it has substantial operations in Europe and Australia, and its European subsidiaries manage the operations of Activision’s European units under management services agreements.
