Epic acquires Chair Entertainment

Epic's confirmed is acquisition of Chair Entertainment, the developer of XBLA game Undertow.

The smaller company has now become a wholly owned subsidiary of the Gears of War developer and will continue to, like, make games using the Unreal Engine.

Financial terms weren't disclosed. Press release after the link.

EPIC GAMES ANNOUNCES ACQUISITION OF CHAIR ENTERTAINMENT GROUP

Cary, North Carolina – May 20, 2008 – Epic Games, Inc., creators of the award-winning Unreal and Gears of War video game franchises and the industry leading Unreal Engine, today announced its acquisition of Utah-based development studio, Chair Entertainment Group, LLC. Under the terms of the agreement, Chair Entertainment Group has become a wholly owned subsidiary of Epic Games and will continue to operate under the same name while maintaining its focus on creating new original game properties which utilize Epic's Unreal Engine technology.

"Chair's stylized approach to creating games is further enhanced by their ability to stretch our technology in new directions that not only help in creating amazing gaming experiences but also demonstrate the power and versatility of the Unreal Engine," said Mark Rein, vice president of Epic Games, Inc. "We are thrilled to bring the Chair team into the Epic family, and look forward to working with them to create original new games that continue to innovate and inspire."

"Our team has long admired Epic for its ability to shape the game industry with its innovative technology and first-rate video game offerings," said Ryan Holmes, Co-Founder and CEO of Chair Entertainment Group. "We share Epic's passion for creating ground-breaking game play experiences and are excited for the opportunity to partner with a truly visionary company."

Founded in 2005, Chair Entertainment Group is jointly led by directors, Donald and Geremy Mustard, and CEO Ryan Holmes. Best known for its award-winning Xbox Live Arcade title, Undertow, Chair's previous success includes the launch of its Empire property which has produced an Orson Scott Card-written New York Times bestselling novel and a feature film currently in development with Warner Bros. In 2007, after several years of building games with Unreal technology, Chair entered into an agreement with Epic Games to make Unreal Engine 3 their exclusive technology for game development.