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  Activision buys game developer Z-Axis
Time: 04:12 EST/09:12 GMT | News Source: ZDNet | Posted By: Alex Harris

Video game publisher Activision said Wednesday that it has acquired game developer Z-Axis for $20.5 million in cash and stock plus possible future share grants worth $3 million at Tuesday's closing prices. Santa Monica, Calif.-based Activision said the deal will not affect its revenue or earnings expectations for fiscal 2003 or 2004. It could issue up to 93,446 additional shares to Z-Axis' owners based on future performance criteria. Z-Axis' development executives have agreed to stay with the company, Activision said.

Z-Axis is best known for the "Dave Mirra Freestyle BMX" franchise. Activision has acquired a number of smaller developers in recent months, including Treyarch, Grey Matter Interactive and Shaba Games. Wednesday's announcement comes on the third day of the Electronic Entertainment Expo, the industry's annual trade show, in Los Angeles.
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