SANTA MONICA, Calif., July 1 /PRNewswire/ -- Activision, Inc. (Nasdaq: ATVI) today announced it has acquired Head Games Publishing, a leading developer and publisher of outdoor sports and lifestyle PC CD-ROM games. The acquisition allows Activision to expand its product offerings into new genres at affordable price points targeted toward broader consumer audiences. Additionally, it provides a platform for the company to develop a value-priced software business, which is one of the fastest growing segments in the PC interactive entertainment business. Under the terms of the merger agreement, Head Games has become a wholly owned subsidiary of Activision and Head Games shareholders were issued 1,000,000 shares of Activision common stock. The transaction will be accounted for as a pooling of interests. Based in St. Paul, Minnesota, Head Games is recognized for developing and publishing value-priced lifestyle games including Cabela's Big Game Hunter which according to PC Data was a top ten title for the months of March, April and May. Other prominent Head Game titles that either are currently in development or recently have been released include Zebco Pro Fishing 3D, AMF ProBowl 3D, Ducks Unlimited, Inc., DuckHunter Pro, Remington Upland Game Hunter, Crosman Extreme PaintBrawl, Brunswick ProPool 3D and MasterCraft Extreme Watersports. "As lower priced hardware continues to bring new consumers to the PC, Activision is committed to strengthening its market share by offering easily accessible, quality interactive entertainment at affordable prices," states Robert Kotick, Chairman and CEO, Activision, Inc. "Head Games is a prominent publisher of branded lifestyle products. We believe that by developing products with strong, recognizable consumer brands, the company has created an entire line of games to dominate the growing mass-market category. In addition to taking advantage of the explosive growth among broad-based consumer audiences, this acquisition also allows us to expand our presence in the value-priced software business and capitalize on the tremendous opportunities that currently exist in this category." "We are honored and excited to partner with Activision and believe this merger is a perfect fit for both companies," adds Dan Hammett, President of Head Games Publishing. "In particular, this will allow Head Games to move to the top of the budget category, as well as enable Activision to emerge as a leader in this high growth arena." Headquartered in Santa Monica, CA, Activision, Inc. is one of the world's leading interactive entertainment software companies. Founded in 1979, Activision posted revenues of approximately $260 million for fiscal 1998. The company is a worldwide developer, publisher and distributor of interactive entertainment software for Microsoft Windows compatible personal computers as well as advanced console game systems such as the Sony PlayStation and Nintendo 64. Activision maintains international publishing subsidiaries in the United Kingdom, France, Germany, Japan and Australia and distribution subsidiaries in the United Kingdom and Germany. Activision maintains North American development and publishing operations in Santa Monica, CA and a development studio in Madison, Wisconsin. More information about Activision and its products can be found on the company's World Wide Web site which is located at http://www.activision.com. The statements contained in this release that are not historical facts are "forward-looking statements." The company cautions readers of this press release that a number of important factors could cause Activision's actual future results to differ materially from those expressed in any such forward-looking statements. These important factors, and other factors that could affect Activision, are described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 1998, which was filed with the United States Securities and Exchange Commission. Readers of this press release are referred to such filings.
SOURCE Activision, Inc.