Square Enix/Eidos Deal Close To Completion News

It's emerged today that Square Enix has put in an offer to acquire ailing UK publisher, Eidos.  The deal, which is being recommended by Eidos' director, is worth £84 million, 129% of Eidos' current share price on the London Stock Exchange.

The deal has to be approved by at least 75% of Eidos shareholders, and could pass by before the end of April.

If the offer by Square Enix is accepted by the shareholders, it will see the likes of Tomb Raider, Hitman, Kane & Lynch, Championship Manager, Thief, and Deus Ex, under the same roof as Final Fantasy and Dragon Quest.

Square Enix president Yoichi Wada said of the move: “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.

“Eidos maintains a strong reputation for high quality development and proven expertise in creating characters and storylines that appeal to consumers. Eidos’ products are highly complementary to our business and will accelerate our aggressive expansion into Western markets. We believe that wide range of both companies’ quality products encompassing major genres will enable us to meet diversified customers’ expectations upon a global basis.”

Eidos chairman Tim Ryan added: “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.”

News of Square Enix's interest in Eidos first broke towards the end of 2008, with several other parties including Warner Bros (which current owns a 20% stake in Eidos) interested in acquiring the publisher.  Whilst a deal with Warner Bros may have seemed the most likely outcome, its parent company Time Warner's $16 billion loss in the third fiscal quarter of 2008/09 may have called time on any potential deal.