bwin.party has agreed to sell its B2B online poker network Ongame to gaming supplier Shuffle Master.
The sale is for a total cash consideration of up to €29.5m and the agreement is consistent with the group's stated strategy and follows its announced intention to sell Ongame on June 30, 2011.
Ongame has a global network that includes more than 25 of the industry's strongest brands and operators, as well as regional networks in France and Italy. The acquisition aligns with Shuffle Master's strategy of expanding its online product offerings to capitalise 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 i-gaming," said Gavin Isaacs, Shuffle Master CEO.
"Poker is a natural fit for our table-centric online offerings and our many jurisdictional licences present a compelling opportunity for our current and future online customers,” he added.
As consideration for the purchase of the shares of the poker provider, the company will pay bwin.party Services €19.5m in cash, subject to certain adjustments at closing, and may pay up to €10m in cash within five years of closing, contingent upon the commencement of legalised, real-money online poker in the US within such period.
Peter Bertilsson, managing director of Ongame, commented: "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 organisations are going to be able to develop the very best in new and innovative solutions for the i-gaming 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.
