Games Start-Up Mpath to Acquire Rival Catapult

In a drive to establish themselves as leaders in the emerging online games business, start-up Mpath Interactive will announce today that it has signed an agreement to acquire 2-year-old Catapult Entertainment Inc.

“The powerhouse company we are creating will set the agenda for the online game industry,” Adam Grosser, chief executive of Cupertino-based Catapult, said in a news release.

Catapult, which is backed by Viacom Corp. and Japanese trading giant Nissho Iwai, allows users of Sega Genesis and Super Nintendo console games to play against each other over its proprietary XBAND Game Network, in operation since November 1994.

Cupertino-based Mpath, by contrast, has built a network of servers that allows PC owners to play flight simulator, action, adventure, role-playing and traditional board games over the Internet. The Mpath system, now in beta testing and expected to go public in the fall, allows members of a team to talk to each other across the Net while they play.

The new company will offer both Catapult’s console-based service and Mpath’s new Internet-based service.

Terms of the deal were not disclosed.

Mpath Chief Executive Paul Matteucci said Mpath’s network of computers are a “perfect complement” to Catapult’s strength in developing well-supported, easy-to-use systems.

“Games fans on Mplayer will benefit from the best trained and most experienced customer support operation in the online multi-player gaming industry.”