Shuffle Master recently announced their decision to not proceed with the acquisition of Ongame Network. The Chief Executive officer of the company, Gavin Isaacs, stated that the company continues to believe ardently in growth opportunities for internet gaming and will continue to concentrate strongly on that area. But there were certain circumstances that make the acquisition not feasible under the present business world’s climate.
Details of the deal
On signing the definitive agreement this February, Shuffle Master thought that Ongame’s sales pipeline and the general market conditions which backed the purchase were mildly accretive or neutral to Shuffle Masters EDITDA. But the business market has deteriorated in Europe since then and it has resulted in a change of matter. This happened when Shuffle Master realized that because of the decline in the market, Ongame’s operations after the acquisition would not be in line with the expected near-term results. The acquisition will also require a larger investment in terms of ongoing funds than expected, because of the change in the business market.
Isaacs added that although they do believe in the eventuality of the acquisition, there is uncertainty regarding the period of legalization of online poker in the states and its actual rolling out. Shuffle Master is disappointed with this outcome, but decided it is the best course of action after making all considerations.
The company will continue looking for opportunities to expand in terms of online space, along with protecting and leveraging their strong brands and intellectual property. They will investigate acquisitive and organic prospects that make sense financially and strategically.
The aim of Shuffle Master in the short-term is to grow and strengthen their core operations and invest in ongoing growth and business initiatives. The company will continue to invest in their own content platform that will be of extremely high quality. They are also concentrating on catering to the needs of online customers. Other options for offering a business-to-business online poker product are consistent with their other web offerings, mobile and social media applications.
Isaacs added that he has been pleasantly surprised with the commitment, quality and leadership exhibited by the Shuffle Master team right through the whole due diligence process. The people are a company’s biggest asset, and for Shuffle Master, they form the foundation for a bright future. He also thanked the Ongame and bwin.party teams for their professionalism and cooperation through the entire process.
About Shuffle Master
Shuffle Master Inc. is a top global supplier of gaming. The company is committed to ensuring gaming is more profitable for operators and fun for players. They do this via superior quality, product innovation and great service. The company works in legalized gaming markets all over the world and is known for its value-added, state-of-the-art products.
The products offers belong to five different categories, which include Utility products like roulette chip sorters and automatic card shufflers, Proprietary Table Games like numerous e-Table game platforms, Electronic Gaming Machines and iGaming.