International Game Technology Announces Definitive Agreement To Acquire WagerWorks, Inc.
biz.yahoo.com
Wednesday July 27, 9:17 am ET
RENO, Nev., July 27 /PRNewswire-FirstCall/ -- International Game Technology (NYSE: IGT) announced today that it has entered into a definitive agreement with WagerWorks, Inc. ("WagerWorks") pursuant to which WagerWorks would be acquired by IGT in an all cash merger. The consummation of the merger is subject to customary closing conditions and regulatory approvals. IGT expects the transaction to be completed in August 2005.
WagerWorks, a privately owned company, is a provider of internet gaming technology, content and services. WagerWorks has distinguished itself with its content portfolio and strict operation policy of not conducting business with operators who knowingly process gambling transactions from the United States. WagerWorks' customers include BSkyB, Rank, Blue Square, Paddy Power, Virgin and World Poker Tour®. They also have important premium content relationships with Sony (including online internet rights to Wheel of Fortune), Hasbro and FremantleMedia.
TJ Matthews, IGT's Chief Executive Officer said, "The acquisition of WagerWorks will help the distribution of IGT game content across new channels and mediums including the internet, mobile devices, and interactive television. WagerWorks' adherence to a strict compliance policy ensures that operators offer the company's products and services to end users in a responsible manner. We are very excited to work with their customer base, content providers and management team to accelerate and enhance WagerWorks' growth prospects."
Paul Miltenberger, Chief Executive Officer for WagerWorks said, "We think this transaction validates WagerWorks' regulatory strategy and reinforces our belief that remote gaming will continue to evolve and mature in a regulated manner, led by credible established gaming companies, like IGT. We've had a longstanding relationship with IGT and our approach to the industry, particularly as it relates to content, is complementary. We're thrilled about the opportunity to utilize IGT's content and intellectual property portfolio to further enhance our product offerings and deliver the most compelling gaming experience to the players."
Under the terms of the proposed transaction, the total consideration paid by IGT would be approximately $90 million, subject to a working capital adjustment. Pending final purchase accounting adjustments including amortization of lifed intangibles and in-process research and development, IGT estimates the transaction to be up to $0.02 dilutive to earnings in both fiscal 2005 and 2006. |
