Rage is pleased to announce that is has agreed to acquire the assets of Digital Image Design Ltd ("D.I.D"), one of the leading flight simulation developers, from Infogrames U.K. Limited ("Infogrames") for a total consideration of £5.5 million, to be satisfied by the issue of 17,741,935 Rage ordinary shares.
As part of the agreement, Infogrames will publish D.I.D's highly publicised and eagerly awaited title "Typhoon", the next generation Euro-Fighter simulation, further extending the excellent commercial relationship between Rage and Infogrames.
D.I.D.'s gross profit in the year to 30 June 1998 was £510,000. However, after inter-company management changes and expenses, D.I.D. reported a loss before taxation of £444,000 and, as a result, had a deficit on equity shareholders' funds at that date of £487,000
D.I.D. was established in 1990 and has built an enviable reputation for developing leading-edge flight simulation computer games. Among D.I.D.'s number one titles which have been critically acclaimed are Euro-Fighter 2000 and TFX, both of which featured in top-seller charts worldwide.
D.I.D. have very strong ongoing links with some of the major video card manufacturers which will compliment and strengthen Rage's existing OEM relationships. They also have close ties with Intel, having been one of the original companies on Intel's K10 programme, and Microsoft, with whom they worked closely on the DirectX 7 programme.
Paul Finnegan, Chief Executive Officer of Rage, commented:
"We believe that welcoming the highly regarded D.I.D. team under the Rage banner will be of major benefit to Rage, immediately establishing us at the very forefront of the popular Flight Simulation sector."
"D.I.D. have an impressive record of producing hit titles and also bring with them one of the sophisticated Driving Engines in the industry. This will greatly assist rage in becoming a market leader in this important market sector."
"Rage's strategy has always been to attract and retain the most talented developers who can create games at the cutting-edge of their field. The acquisition of D.I.D. is entirely consistent with that strategy."