Online Poker Network Purchased by Shuffle Master for $28.5 Million

Published Monday, March 05, 2012 -

Shuffle Master's fiscal first-quarter earnings jumped 59% as the casino-games business saw sharply higher revenue from its electronic gaming segment. This has led to the announcement that the firm will agree to purchase the European online poker supplier Ongame Network Ltd.for $28.5 million.

A subsidiary of Services of Austria Ongame Network has as many as 25 operators and poker networks functioning in Italy and France in its portfolio. Gavin Isaacs Shuffle Master’s Chief Executive Officer commented, "Poker is a natural fit for our table-centric online offerings and our many jurisdictional licenses present a compelling opportunity for our current and future online customers," Isaacs continued, "Our acquisition of Ongame will allow Shuffle Master to offer a scalable, proven and secure solution for online poker."
The table game and gambling equipment vendor located in Las Vegas USA indicated the firm will now supply online products to regulated gambling markets and other internet gaming operators.

This change is obviously in preparation for the eventual regulation of online poker in the USA and follows moves by other slot machine makers International Game Technology and Bally Technologies into the internet business segment.
The company is in the business of leasing its table game titles such as Three Card Poker, Ultimate Texas Hold'em and Let It Ride and expects to purchase the Ongame Network with cash on hand or its existing senior secured revolving credit agreement.
In the quarter that ended Jan. 31 grew revenue year-over-year by 28 percent to $56.1 million. Net income increased 59 percent, to $7.6 million, while earnings per share 14 cents, up from 9 cents in the same quarter a year ago. Impressive results announced a day earlier than expected to line up with the acquisition launch. Lin Fox, Chief Financial Officer  said the company paid down debt in the quarter through cash flow."This has facilitated our commitment to invest in the business, as demonstrated ... with today's announcement of our intent to purchase Ongame Network,"


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