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Square Enix to buy Eidos
Directors of both companies approve a cash offer from Square Enix
As some pundits predicted last month, Eidos has now revealed that Japanese RPG specialist Square Enix has put in a serious offer to buy Eidos plc, and the directors of both companies are in favour of the deal going ahead.
In a statement detailing the recommended cash offer released today, the directors of both companies said that they ‘are pleased to announce that they have reached agreement on the terms of a recommended Offer under which SQEX, a wholly-owned subsidiary of Square Enix, will acquire the entire issued and to be issued share capital of Eidos.’
The decision is now in the hands of Eidos’ shareholders, and the Eidos directors say that they will ‘unanimously recommend that Eidos Shareholders vote in favour of the resolutions to be proposed.’ In order for the buyout to go ahead, the scheme needs to be approved by the holders of at least 75 per cent of the shares in Eidos, either in person or by proxy.
Eidos’ chairman, Tim Ryan, said that ‘we believe that this cash offer provides Eidos Shareholders with an attractive price and certainty in today’s challenging market backdrop and economic outlook.’ He also added that the acquisition would ‘complement Square Enix’s expansion into Western markets.’
Previously, Square Enix was mainly known for its large-scale Japanese RPG series, such as Dragon Quest and Final Fantasy, but it’s recently made a number of attempts to sprawl out into other gaming areas in the West. In November last year, the company also announced that it would be publishing Supreme Commander 2. In a statement, Square Enix explained that it ‘has previously worked exclusively with Japanese development companies, so the decision to form strategic partnerships with developers located outside of Japan serves as a new cornerstone of its strategy to create games targeted primarily at consumers in Europe and North America.’
The decision to purchase Eidos is undoubtedly a further element of this strategy to crack the western games market. Square Enix’s president, Yoichi Wada, implied that the Tomb Raider franchise was one of the main clinchers of the deal, saying that ‘Eidos is a talented developer and publisher of interactive entertainment products with a broad portfolio of highly successful mass market franchises, led by Tomb Raider, one of the most successful videogame franchises of all time.’ He also added that the buy-out would ‘accelerate our aggressive expansion into Western markets.’
