Activision confirms DemonWare deal

Today, Activision confirmed earlier reports of its acquisition of DemonWare. The acquisition took place for an undisclosed sum, although Ireland's Sunday Independent believed the deal could be worth upward of 15 million euros ($19.7 million). In a statement, the California-based publisher said it expects to complete its purchase of the Irish middleware maker by the end of its first 2008 fiscal-year quarter, which ends on June 30, 2007.

Under the terms of the agreement, DemonWare will become a wholly owned subsidiary of Activison, and "company management team and key employees" will remain onboard, signing long-term contracts with the publisher. DemonWare staff will continue to work from the company's Dublin offices.

Activision's statement said it bought DemoWare to capitalise on growing online next-gen console gameplay. DemonWare, which was founded in 2003, specializes in providing functionality for multiplayer games. The company's middleware has been used in titles including THQ's Saints Row, Ubisoft's Tom Clancy's Rainbow Six Vegas, and Activision's own Call of Duty 3.