French-based development company Kalisto Entertainment, producers of Nightmare Creatures II and 4 Wheel Thunder, has agreed to buy Daylight Productions through a stock swap, the two companies said on Friday. Under the deal, a new company, Kalisto USA, will be formed and will operate primarily out of the San Francisco Bay Area. It will develop both original and licensed third-party games.

　　The reason behind this acquisition is to reinforce Kalisto's position in the US market, a segment that accounts for 40 percent of the company's sales. Although the company maintains a marketing presence in Japan, Europe, and the US, its development efforts are currently based only in France.

　　"I look forward to the challenge of continuing to grow both our San Francisco and Austin studios and working with the best technical and creative talent that these two diverse locations have to offer," said Mark W. Day, current Daylight president and new head of Kalisto USA. "Kalisto Entertainment is the largest dedicated developer in Europe and we are excited at the opportunity to represent Kalisto in the US. We share the same philosophy of quality, creativity, and industry savvy that has made Kalisto such a success."

　　"We are thrilled to have Mark Day's talented team join Kalisto and to expand our development presence in the US," said Nicolas Gaume, CEO of Kalisto Entertainment. "In addition to their strong management team and excellent development abilities, Daylight also brings to Kalisto a great knowledge and awareness of the expectations and demands of the US game-playing public. I am also excited that this will bring Kalisto to the attention of publishers in the USA that we have not had the opportunity to work with before."

　　Daylight Productions, soon to be Kalisto USA, has produced games such as Wing Commander 3 and 4 and Prophecy for publishers like Electronic Arts, Activision, and Universal Interactive Studios.