Activision to Buy Demonware

Activision is reportedly buying middleware company Demonware.

Dublin newspaper Sunday Independent (registration required) and Ireland technology website SiliconRepublic are both reporting that game publisher Activision is in the process of purchasing Irish middleware developer Demonware. SiliconRepublic claims the deal has been in the works for over six months and could potentially end in an acquisition exceeding €15 million ($19.7 million).

Demonware sells online networking platforms that have powered numerous titles for clients such as Activision, Ubisoft, THQ and Atari. The popularity of Demonware’s voice communication technology, matchmaking technology and server expertise could present numerous licensing opportunities for a new owner. Enterprise Ireland, Dublin Seed Capital Fund and several private backers, who have invested €1 million in growing Demonware, could earn some large gains from the acquisition.

When contacted, Activision did not comment on these rumors.

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