Square Enix has announced it had launched a £84.3 million acquisition bid for UK publisher Eidos.
The bid was made one month ago on Jan 14, with the offer to purchase the struggling UK publisher at 32p a share, an attractive premium over three times more than Eidos' share price when the bid was made.
Square Enix, the Japanese enterprise which has recently made a string of investments to expand its reach Westward, said that the Eidos buyout would be “highly complementary” to its business strategy.
“Eidos maintains a strong reputation for high quality development and proven expertise in creating characters and storylines that appeal to consumers,” Square Enix President Yoichi Wada said in a statement.
“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,” Wada added.
Eidos chairman Tim Ryan said of the deal: “We believe that this cash offer provides Eidos Shareholders with an attractive price and certainty in today’s challenging market backdrop and economic outlook."
“The acquisition of Eidos will complement Square Enix’s expansion into Western markets and offers mutually beneficial opportunities for the combined group. The Board believes that this offer is in the best interests of the shareholders.”
It is said that Eidos directors will be recommending that shareholders accept the offer. The acquisition has not yet been approved by regulators.
