Atari acquires Cryptic Studios

City of Heroes developer Cryptic Studios has been purchased by Atari:

Atari has announced that it has acquired US-based MMO developer Cryptic Studios in a performance-linked deal. The company, previously responsible for City of Heroes and City of Villains, which made over USD 100 million for NCsoft, is in production on three titles, to be released over the next three years. 

Champions Online is slated for a 2009 launch, while a Star Trek MMO will follow in 2010 and an as-yet-unannounced game will be released in 2011.

Additionally the deal will see some of the studio's technology make its way into other Atari titles, as well as powering the Atari.com portal.

The deal itself comprises of an initial USD 26.7 million upfront cash payment, with an estimated maximum earn-out of around USD 27.5 million to be made up of cash and Infogrames shares.

Additionally the performance-related bonus could see as much as USD 20 million paid in cash or stock if Champions Online and Star Trek's 2010-11 revenues outperform set undisclosed targets, payable in August 2010 and May 2011.