US gaming supplier International Game Technology (IGT) has put in an SEK700m (€77.7m) bid for Swedish online gaming platform provider Entraction.

Premium subscribers continue here to the full article, or upgrade your subscription now to read the rest of this article and to gain access to all of the premium content at GamingIntelligence.com.

 

 

US gaming supplier International Game Technology (IGT) has put in an SEK700m

(€77.7m) bid for Swedish online gaming platform provider Entraction.

The IGT bid equates to a price of SEK67.56 per Entraction share, representing a

premium of 33.8 per cent on yesterday’s closing price and a premium of 57.7 per

cent on the shares’ volume weighted price on NASDAQ OMX over the past three

months.

Entraction’s board of directors have unanimously recommended that shareholders

accept the offer.

The company said in a statement Thursday that the IGT offer is conditional on it

acquiring over 90 per cent of the share capital of Entraction and all necessary

regulatory approvals, and that the acceptance period for the offer ends on June

7th 2011.

IGT is said to have already performed limited due diligence on the business prior

to announcing the offer and the two parties have entered into a transaction

agreement.

Entraction’s board of directors said their recommendation that shareholders

accept the IGT offer is based on a number of factors including the company’s

present position, expected future development, and associated risks and

opportunities.

They added that IGT has stated its intent to “protect, grow and invest in

Entraction’s business by welcoming their workforce, with as little disruption as

possible”, suggesting that the majority of jobs will be protected.

“This transaction represents a fantastic opportunity for our employees,

customers, and shareholders alike” said Peter Åström, president and CEO of

Entraction. “Entraction will be able to utilize IGT’s global scale and

distribution to advance our short and long term objectives in exciting, new ways

and we look forward to joining the IGT team.”

IGT is already active in online gaming via its games portfolio which includes

popular titles such as Cleopatra and Monopoly Multiplier, and the acquisition of

Entraction would enable the company to play a leading role in the online gaming

business-to-business sector, particularly once legislation allows it to serve the

US market.

“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.”

IGT’s bid for Entraction was made through its wholly-owned Swedish subsidiary

Goldcup 6663 AB, which is to be renamed Eagle One AB.

The transaction will be financed through IGT’s available cash and settlement,

subject to conditions,  is expected to take place on June 15th.

Shares in Entraction AB (Co. Profile) (OMX:ENT-B) soared 31 per cent in Stockholm

this morning following the announcement to SEK66.25 per share.

Related