Retro games firm Atari has announced its intention to buy Nightdive Studios.

The developer is famous for its remasters of classic titles, such as System Shock, Quake and Shadowman. Atari is shelling out $10 million for the company, half of which is being dished out in cash; the remaining amount is shares that will be issued when the transaction is completed. That is expected to by at the end of April.

Nightdive will also earn another $10 million cash if it hits certain milestones over the next three years.

"Night Dive and Atari have a long history together and we know that Atari shares our passion for retro games and our focus on producing high-quality new and remastered games that do justice to the original IP," Nightdive bosses Stephen Kick and Larry Kuperman said.

"As we look to grow our business and expand our capabilities, we could think of no better long-term partner than Atari."

Atari chair and CEO Wade Rosen (pictured) added: "Nightdive's proven expertise and successful track record in commercialising retro IP is well-aligned with Atari's strategy and I am confident that their combined talent, technology and IP portfolio will contribute to Atari's future success."