France's Infogrames Entertainment SA agreed to buy the remaining stake in video game company Atari Inc. it does not already own for $1.68 per share, or about $11 million cash.
Infogrames, which already owned a majority stake in New York-based Atari, said late Wednesday Atari will become its wholly owned subsidiary when the deal closes in the third quarter of this year.
The deal seeks to put an end to Atari's financial struggles. Infogrames Chief Executive David Gardner said in a statement that bringing the businesses together will help the company simplify its business structure as it seeks to "rebuild a well-managed, cohesive and financially disciplined company."
Atari's management, including Jim Wilson, who was recently named president and CEO, will join Infogrames and remain focused on the North American video game market, Infogrames said.
As part of the deal, Infogrames has agreed to lend Atari $20 million to fund its operations until the buyout closes.
Atari has been suffering from slumping sales and laid off a large chunk of its work force last year. It publishes titles such as "Dragonball Z" and "Dungeons and Dragons."
Atari's shares rose 9 cents, or 5.8 percent, to $1.63 in morning trading.
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