The company is remaining tight-lipped, but it is understood that a number of suitors are currently involved in a bidding battle to acquire what is now one of the last-remaining games publishers based in the UK.
Currently working on the hotly-tipped Ferrari Challenge title, System 3 boasts a number of retro and mainstream licences from the likes of Epyx and Williams, including Impossible Mission, California Games and Gottlieb Pinball. The firm also owns strong home-grown franchises built over its 25-year history, such as The Last Ninja and International Karate.
In addition, the group includes the Play It budget label which has had much success in the value PS2, DS and PSP sectors in Europe.
Mark Cale, CEO at System 3, refused to comment to MCV on the rumours regarding the acquisition.
Impossible Mission (pictured below left), one of the retro titles currently in development thanks to the licensing deals with Epyx and Williams, is a remake of the popular Commodore 64 platformer, while California Games was initially a hit on multiple vintage formats, including the Sega Master System and the NES.