ShuffleMaster Enters Into Agreement to Purchase OnGame
The OnGame Poker Network may be coming to the US market now that ShuffleMaster has announced its agreement to purchase the European online poker firm.
The deal is actually contingent upon the US market opening up for real money play.
As consideration for the purchase of the shares of Ongame, Shuffle Master will pay bwin.party Services (Austria), which currently owns Ongame, 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.
OnGame is currently the 5th largest Internet poker network in the world.
"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 Shuffle Master. "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."
"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.
- Aaron Goldstein, Gambling911.com
