IGT bids £70m for Entraction
Board of Swedish software company and dot.com poker network unanimously recommends bid from casino supplier just three weeks after 'Black Friday'.
The board of Entraction has unanimously recommended a US$115m (£69.7m) bid for the company from casino supplier International Game Technology (IGT).
In a statement, the Swedish-based company clarified the offer is “conditional upon IGT becoming owner of more than 90% of the share capital in Entraction and all necessary regulatory approvals being granted.”
IGT, which last week agreed a deal to sell gaming machine manufacturer Barcrest to Scientific Games for $54m, released a statement of its own explaining that it “expects to fund the transaction from available cash on its balance sheet.”
Entraction’s poker network currently has a seven-day average of 1440 cash game players according to rankings site PokerScout, placing it between 888 and Microgaming. Skins on the network include Victor Chandler and Weather Lottery-owned Devilfish Poker.
Today also saw the Swedish company release its interim report for the three months ended 31 March, which showed operating profit down 21.66% year-on-year to SEK8.1m (£808,888).
Profits were also down, from SEK10.67m to SEK7.84m, a decrease of 26.5% on the same period in 2010, while net sales and EBITDA were both down 16% year-on-year.
Entraction president and CEO Peter à ström (pictured) used the latest update to reflect on Black Friday, asserting that recent developments “[strengthen] Entraction’s opportunities for success when the US market opens” and saying “it is clear that all changes in the market favour Entraction and our partners.”
Since the announcement of the bid, shares in Entraction “ listed on NASDAQ OMX First North Premier “ have risen by more than 30% and this morning reached a 52-week high of SEK67 (£6.69).