The news comes a fortnight after rumours emerged that the US publisher was set to bolster its development resources. DemonWare is a specialist in network middleware technologies for console and PC games, with the acquisition enabling Activision to take advantage of the growth in online gaming.
Activision has been working with DemonWare since 2005, most recently utilising the studio's technologies in Call of Duty 3. DemonWare has two main products - Matchmaking+, which provides advanced community services for multiplayer gaming including player matching, user profiling and gaming statistics across current and next generation consoles and PCs; and DemonWare's State Engine, a cross-platform network engine that ensures that console-to-console communications are secure and as lag-free as possible.
DemonWare is expected to become a wholly-owned subsidiary of Activision, with the company's management team and key employees signing long-term employment contracts with the US firm. The studio will remain headquartered in Dublin, Ireland.