|International Game Technology (IGT) has announced that it has entered into an agreement to purchase London-based gaming systems provider Cyberview Technology Incorporated for $76 million.|
IGT also stated that it would enter into a licensing agreement with Cyberview once the purchase was complete for access to patents and technology not included for a one-time fee of nine million dollars.
AIM-listed Cyberview stated that it plans to wind up the company and distribute its cash assets to shareholders upon completion of the sale. The agreement is subject to shareholder approvals and other conditions and could be completed as early as the third quarter of this year.
“This transaction is beneficial to all parties,” said Seamus McGill, Chief Executive Officer for Cyberview.
“Cyberview will be able to distribute substantial cash proceeds to its shareholders. IGT will be able to use these assets to expand and diversify its business opportunities.”
Cyberview stated that it had built a good UK market position for its downloadable server-based gaming technology but that, going forward, it needed to penetrate the large North American market. Achieving the requisite licences in the US has taken longer than expected and it spent almost seven million dollars last year with no sales. The firm reported a pre-tax loss of $1.52 million for last year, which compared to profits of $80,116 for 2006.
'We are delighted to have reached this agreement with Cyberview,” said Steve Morro, Chief Operating Officer for IGT.
“This purchase agreement, along with the patent license, will strengthen our core business and provide access to the fixed-odds betting market in the UK.'
Las Vegas-based IGT stated that the US operations of Cyberview would be integrated into its American business while the UK undertakings would be incorporated into its Barcrest brand.