Chair has been using Epic's Unreal Engine for both games - and now this new partnership will allow Epic to find new ways of using their engine on smaller properties.
From the Kotaku story:
"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 Chair's Holmes. "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."In the recent past Epic has had two teams - the Unreal Tournament Team and the Gears of War Team. The smaller development team of Chair may help to expand themselves in the "F YEAH" demographic.
Empire: Alpha Complex looks fantastic from what we've seen... maybe Epic can use these extra resources and... I dunno... do a port or make a new Jazz Jackrabbit game? Please? I'd be up for a remake of Jill of the Jungle or Xargon while your at it!
Source: Kotaku: Epic Snags Undertow Developer Chair Entertainment Group
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