Bwin.party finds buyer for Ongame unit
Online gaming outfit bwin.party digital entertainment has sold its Ongame business-to-business online poker network to US rival Shuffle Master.
Online gaming outfit bwin.party digital entertainment has sold its Ongame business-to-business online poker network to US rival Shuffle Master.
The US firm is initially paying €19.5m in cash for Ongame with a top-up payment of up to €10.0m payable in cash in the event that regulated online poker commences in the United States on either a federal or intra-state basis within five years from completion. The earlier the US loosens up regulations on online gaming - assuming it does so within five years - the more money Bwin.party will receive from Shuffle Master.
Bwin.party was formed by the merger of bwin and Partygaming and has been looking to offload peripheral parts of the business more or less since the merger completed, as it wants to move to a single gaming platform, which will be easier to maintain and develop.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Ongame has been up for sale since June of last year. In the second half of 2011 Ongame notched up adjusted earnings before interest, tax, depreciation and amortisation of €0.04m. At the end of June 2011 it had unaudited gross assets of €26.6m.
The management of Ongame will transfer with the business and the net sale proceeds will be used for general corporate purposes.
"Ongame is one of the world's leading online poker networks with a state-of-the-art technology platform," said Shuffle Master's Chief Executive Officer, Gavin Isaacs.
"It is an excellent strategic fit with Shuffle Master and our interactive gaming business. Following completion, we will focus on building the existing business in Europe as well as looking for growth opportunities in the rest of the world," Isaacs added.
jh
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
‘Inheritance tax insurance’ enquiries are soaring – but is it worth it?
Premiums for whole of life insurance can run to £5,000 a month to cover a £300,000 inheritance tax bill, with policies costing more the older you take them out.
-
MPs warn over Lifetime ISAs which could leave savers out of pocket
The Treasury Committee has highlighted confusion around the Lifetime ISA withdrawal charge, which risks consumers losing “a significant part of their savings”