Industry icon Atari is acquiring retro developer Digital Eclipse.

The deal is worth up to $20 million; $6.5 million is being paid out straight away in a mix of cash and shares, while another $13.5 million is on the table if Digital Eclipse hits performance targets over the next decade.

The acquisition is designed to enhance the Atari's "retro-focused" strategy. It follows Atari's acquisition of Nightdive Studios earlier this year.

Digital Eclipse has previously worked on a variety of retro titles, including Street Fighter 30th Anniversary Collection and Mega Man Legacy Collection. More recently, the company made Teenage Mutant Ninja Turtles: The Cowabunga Collection, which launched to critical acclaim.

Digital Eclipse and Atari previously worked together on Atari 50: The Anniversary Collection.

"Digital Eclipse is the best in the world at what they do," said Atari CEO and chairman Wade Rosen. "They have a deep love and respect for the history of the games industry, and are renowned for developing critically acclaimed projects based on historic franchises.

"Digital Eclipse, along with Nightdive, are in perfect alignment with Atari’s DNA and renewed purpose. I'm personally excited to see where we can push the boundaries of retro innovation together."

Digital Eclipse CEO Andrew Ayre added: “Atari and Digital Eclipse share the same ethos when it comes to celebration and preservation of gaming history. It’s an exciting combination, and I am confident this will serve Digital Eclipse and our fans extremely well as we grow our business and expand our capabilities.”