The iGaming industry’s latest acquisition is set to take place as International Game Technology (IGT) launches an audacious bid for Sweden’s Entraction poker network. Not content with having a conference stand so big and flash that it gives you a seizure, IGT has launched a recommended cash offer of SEK 67.56 per share to takeover Entraction.
It means that if the cash offer to shareholders is successful, Entraction will be worth SEK 700 million ($155million) and IGT will finance the offer through cash available from their balance sheet.
“The addition of Entraction advances IGT’s position in legalized Interactive gaming markets,” said Patti Hart, President and CEO of IGT. “It strengthens our interactive portfolio by adding poker, bingo, casino, and sports betting. This combination will drive enhanced value for our global customers and partners. We are also thrilled to welcome the Entraction team as the newest members of the IGT family.”
The deal will give IGT quite the global reach as Entraction has a number of deals in place with gaming companies around the world and has even signed a deal to provide a poker network to a Chinese gaming company. The Swedes have had disappointing figures for the past few quarters and it will be hoped that IGT’s backing will improve the outlook for the company.
Börje Fors, Chairman of the Board of Entraction commented, “The Board of Directors of Entraction has thoroughly evaluated IGT’s offer and has unanimously resolved to recommend the shareholders to accept the offer.”
IGT has already shown their commitment to mobile over the coming year and after the online and mobile departments merged you can see them advancing plans for that area of the business and getting Entraction involved as part of the plans.
Subject to regulatory and any other conditions, the deal should go through on June 15 2011.