Independent developer collective Foundation 9 announced that it has acquired the Los Angeles-based Shiny development studio from Atari, in an acquisition funded by Foundation 9’s recent investment from technology-focused firm Francisco Partners. Financial terms were not disclosed. Under the terms of the deal, the Shiny team will remain intact and will co-locate with Foundation 9 studio The Collective in 2007. The Dave Perry-founded Shiny is perhaps most well known for Earthworm Jim, for which a new version was being worked on, though it has been confirmed that this project remains an Atari property. Shiny was acquired by Atari in 2002. Shiny joins other Foundation 9 studios, including the aforementioned The Collective, as well as Backbone Entertainment, Pipeworks, ImaginEngine and Digital Eclipse. Foundation 9 was formed in 2005 by the merger of Backbone Entertainment and The Collective. The company also owns a significant minority stake in Hollywood production and management company, Circle of Confusion, whose clients include the Wachowskis, creators of The Matrix. Circle of Confusion recently announced a production deal with CBS. Foundation 9 has shipped more than 300 titles since its inception, including the original title Death, Jr. Foundation 9’s games have generated more than $1 billion in consumer sales, with recent successes including Star Wars Episode III: Revenge of the Sith. The company is currently at work on more than 20 titles, including two new editions of Death, Jr., Dirty Harry, and Sonic Rivals. The company’s Backbone studio just recently shipped MechAssault: Phantom War for the Nintendo DS. “Shiny Entertainment fits well with the current studios of Foundation 9 Entertainment and aligns with our long-term goals for the future,” said Jon Goldman, Chairman and CEO. “The studio has tremendous talent and experience working with big Hollywood franchises and will be working with us on a major, as-yet-undisclosed day and date release. The Shiny team will only add to our capabilities and technology base.”