|Canadian online bingo software developer and provider Parlay Entertainment Inc has announced that it is in the early stages of being acquired by PEIC Acquisition Corporation, a company run by the founder of Sportingbet, Mark Blandford.|
The two companies signed a non-binding letter of intent late last week proposing that PEIC acquire Parlay’s outstanding common shares by way of a statutory plan of arrangement. The proposed transaction is subject to satisfactory completion of due diligence by PEIC, the execution of a definitive agreement, court approval, regulatory approval and the approval of both the board of directors and the shareholders of Parlay.
The letter states that Parlay will not solicit or initiate competing acquisition proposals or participate in other negotiations or discussions, however, this would not impact on Parlay's ability to respond to any superior proposal from another party.
PEIC is registered in Ontario, Canada, with Blandford serving as President. It is a wholly owned subsidiary of Letton Investments Ltd of Barbados established to invest in companies operating in the online gaming industry.
According to the agreement, Parlay is to pay all out of pocket legal, tax and accounting costs and expenses up to $491,000 except where the transaction is terminated by PEIC in certain limited circumstances.