Stock Market Watch

Shuffle Master – To acquire Ongame Network Ltd. – SHFL

by ·


Shuffle Master, Inc. (NASDAQ : SHFL) a leading global gaming supplier, announced that it has entered into a definitive agreement to acquire Ongame Network Ltd. (“Ongame”), from bwin.party Services (Austria) GmbH.  Ongame is one of the world’s largest poker providers to online gaming operators (“business-to-business” or “B2B”), with a global network that includes more than 25 of the iGaming industry’s strongest brands and operators, as well as regional networks in France and Italy.

The acquisition aligns with SHFL’s strategy of expanding its online product offerings to capitalize on regulated online gaming, while operating purely as a B2B provider and not providing gaming content directly to players.

“Our acquisition of Ongame will allow Shuffle Master to offer a scalable, proven and secure solution for online poker.  Immediately upon closing the transaction, we will be able to begin leveraging all of Ongame’s experience and expertise in iGaming,” said Gavin Isaacs, Chief Executive Officer of SHFL.  “I am confident that Ongame will fit seamlessly into our ongoing interactive initiatives of delivering our renowned brands to online gaming operators, partner web sites, social networks and mobile platforms. Poker is a natural fit for our table-centric online offerings and our many jurisdictional licenses present a compelling opportunity for our current and future online customers.  This acquisition is further evidence of our great momentum as we continue to execute on our core businesses and pursue our strategic objectives for future growth. We look forward to Ongame joining the Shuffle Master family and we welcome them on board.”


As consideration for the purchase of the shares of Ongame, SHFL will pay bwin.party Services (Austria) GmbH euro 19.5 million in cash, subject to certain adjustments at closing, and may pay up to euro 10 million in cash within five years of closing, contingent upon the commencement of legalized, real-money online poker in the U.S. within such period.  The euro 10 million contingent payment decreases through the five-year period.  Shuffle Master expects to fund the transaction with cash on hand or availability on its existing senior secured revolving credit facility.

“The acquisition of Ongame will provide Shuffle Master with world class poker software and an entire enterprise with proven skills and the operational experience that will permit us to begin immediately offering state-of-the-art B2B online products following the closing of the acquisition,” said Louis Castle.  “We are very focused on creating greater value for our current and future customers and, as a result, our objective is to make Ongame the most comprehensive and competitive poker engine in the marketplace. We believe that Ongame’s first-to-market history of execution is perfectly positioned to take advantage of the growing online market in Europe and the potential legalization of online poker in the U.S.”

“Shuffle Master is renowned for offering its customers a unique and diverse suite of products designed to meet the needs of today’s online operators and casinos,” said Peter Bertilsson, Managing Director of Ongame.  “We believe that our experience and expertise in the European market is a natural fit with Shuffle Master’s considerable commitment and history in developing innovative games and products for land based operators.  I am confident that together, our organizations are going to be able to develop the very best in new and innovative solutions for the iGaming market.”

The acquisition is subject to completion of certain conditions, including receipt of required regulatory approvals, and is expected to close within not more than nine months following execution of the definitive agreement.

More Posts by this author

edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


Tags:

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

You may also like...