Take-Two Interactive Software Announces the Acquisition of DMA Design, Ltd.
Creator of Take-Two's Best-Selling Grand Theft Auto Series
to Become Internal Development Studio for Sony PlayStation 2,
the PC & the Internet
Take-Two will pay no royalties on GTA products from this date forward-
Acquisition is expected to be accretive in both
fiscal 1999 and fiscal 2000
Take-Two Interactive Software, Inc., (NASDAQ:TTWO) announced today that it has acquired all of the capital stock of DMA Design Ltd from Infogrames Entertainment, S.A. for $11 million in cash, including the assumption of certain bank indebtedness.
DMA Design, a ten-year-old game production studio based in Dundee and Edinburgh, Scotland, is the creator and developer of Take-Two's best-selling Grand Theft Auto series. The company expects Grand Theft Auto products to account for more than $50 million in net sales for its fiscal year ending Oct. 31, 1999. Prior to the creation of Grand Theft Auto, DMA was best known for the creation of the worldwide best-selling Lemmings series for Sony Computer Entertainment's Psygnosis subsidiary.
As a result of the transaction, the company will publish all Grand Theft Auto products, including the highly anticipated GTA2 (the sequel to Grand Theft Auto, which will ship before the company's fiscal year ending Oct. 31), royalty free on a go forward basis. As a result, the company expects the acquisition to be accretive in both fiscal years 1999 and 2000.
The company plans to utilize the DMA Design team as a high-end source of creatively diverse product for Sony's upcoming PlayStaton 2 platform as well as the PC and the Internet. DMA will continue to develop Grand Theft Auto titles for publication through the company's Rockstar Games division, including GTA3D and The Grand Theft Auto Online Crime World.
Sam Houser, president of Rockstar Games, stated, "We are thrilled that DMA is officially part of the Take-Two and Rockstar Games family. In particular, the ability to align Rockstar with a development house, such as DMA Design, that is clearly approaching the video game development in a new and exciting manner, makes this a perfect match."
Ryan Brant, chief executive officer, said, "The acquisition of DMA Design is important as it gives our company access to the most creative game design and production minds in our industry and development ownership of its most coveted intellectual property - Grand Theft Auto. We believe the addition of DMA will enhance the future growth prospects of our development and publishing businesses."
Headquartered in New York, Take-Two Interactive Software Inc. is an integrated global developer, marketer, distributor and publisher of interactive entertainment software games and accessories for the PC, Sony PlayStation, Nintendo 64, Nintendo Game Boy Color and the Sega Dreamcast. The company publishes and develops products through various wholly owned subsidiaries including: Rockstar Games, TalonSoft, Joytech and DMA Design. The company maintains a publishing and distribution partnership with, and 19.9% equity interest in, both Gathering of Developers and Bungie Software. The company's Jack of All Games value added distribution arm maintains sales and marketing offices in Cincinnati, New York, Toronto, London, Paris, Munich, Oslo, Stockholm, Copenhagen and Sydney. The company owns and operates DVDWave.com, an Internet retailer of DVD movies.
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Safe Harbor Statement under the Private Securities Reform Act of 1995: The statements contained herein which are not historical facts are forward-looking statements that involve risks and uncertainties including, but not limited to, risks associated with the company's future growth and operating results, the ability of the company to successfully integrate the business and personnel of newly acquired entities into its operations, credit risks, inventory obsolescence, technological change, competitive factors, product returns and unfavorable general economic conditions. Actual results may vary significantly from such forward-looking statements. Take-Two undertakes no obligation to update forward-looking statements contained within this press release.
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|Date:||Sep 29, 1999|
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