Epic Games today announced the acquisition of Chair Entertainment Group, the independent video game production company known most recently for the Xbox Live Arcade title Undertow. Financial terms were not disclosed.

The Utah-based developer becomes a wholly owned subsidiary of Epic but will continue to operate under the Chair Entertainment name while focusing on creating new properties powered by Unreal technology.

"Chair's stylized approach to creating games is further enhanced by their ability to stretch our technology in new directions that not only help in creating amazing gaming experiences but also demonstrate the power and versatility of the Unreal Engine," said Mark Rein, vice president of Epic Games, Inc. "We are thrilled to bring the Chair team into the Epic family, and look forward to working with them to create original new games that continue to innovate and inspire."

"Our team has long admired Epic for its ability to shape the game industry with its innovative technology and first-rate video game offerings," said Ryan Holmes, Co-Founder and CEO of Chair Entertainment Group. "We share Epic's passion for creating ground-breaking game play experiences and are excited for the opportunity to partner with a truly visionary company."

Chair was founded in 2005 and is led by directors Donald and Geremy Mustard. The company's first original property, Empire, was launched in 2006 as a best-selling novel written by Orson Scott Card. A movie based on the property is already in development by Warner Bros. and Chair has confirmed that it has future plans for video games and comic books based on Empire as well. The games no doubt will be powered by Unreal.