Folks at Activision have announced their entering into an agreement to acquire DemonWare, the leading provider of network middleware technologies for console and PC games headquartered in Dublin, Ireland. The acquisition will enable Activision to gain efficiencies related to online game development and positions the company to take advantage of the growth in online gameplay that will be driven by the next-generation consoles.

Activision has been using DemonWare technology since 2005 and is currently using it in its best-selling products. The two companies see their bonding through a very optimistic perspective so, under the terms of the agreement, DemonWare will become a wholly owned subsidiary of Activision and the company's management team and key employees will sign long-term employment contracts with Activision.

"In the next two-to-four years, we expect that online gaming will grow significantly as a result of a more seamless plug and play experience provided by the next-generation consoles," stated Mike Griffith, CEO of Activision Publishing. "The acquisition of DemonWare will enable us to eliminate many of the challenges associated with online multiplayer game development, reducing development time and risk, and allowing us to deliver consistent, high-quality online gaming experiences."

As for DemonWare, CEO Dylan Collins says that they're confident of their agreement because the two companies have worked before on "highly successful multiplayer titles" and "shared vision on where the future of online gaming lies." Although the agreement of the two companies sounds like a done deal, they haven't yet discussed financial terms. How come, your guess is as good as mine. But what if they don't settle on the financial terms? Activision and DemonWare are supposed to just forget they ever had an agreement?