Entertainment software vendor Activision Inc said Monday that it has acquired Neversoft Entertainment Inc, a Los Angeles-based company that specializes in developing games for consoles. Activision will hand over 700,000 shares of common stock, valuing the deal at $12.3m, based on Friday’s closing price of $17.50.
Activision says the acquisition will enable it to take full advantage of the next-generation of console game systems. After closing, Neversoft will become a wholly-owned subsidiary of Activision. The transaction is being accounted for as a tax-free pooling of interests. In connection with the deal, key members of Neversoft’s management team have signed long-term employment contracts with Activision.
