International Game Technology has entered into an agreement with Cyberview Technology to purchase substantially all of the assets of the company for a cash purchase price of $76 million.



IGT buying Cyberview for $76 million

 

International Game Technology has entered into an agreement with Cyberview Technology to purchase substantially all of the assets of the company for a cash purchase price of $76 million.

The deal includes Cyberview cash on hand of approximately $17 million.

IGT also announced that concurrently with the closing of the asset purchase, it will enter into a license agreement with Cyberview that provides IGT access to certain Cyberview patents and technology not included in the asset purchase, for a one-time license fee of $9 million.

The agreement is subject to Cyberview shareholder approval and certain other closing conditions and is expected to close in the third calendar quarter of 2008.

In the event that the transaction is successfully completed, the U.S. operations of Cyberview will be integrated with IGT in the United States, and its UK- based operation, which focuses on the development of the Cyberview business in markets outside of the United States, will be integrated with IGT-UK (Barcrest).

 “This transaction is beneficial to all parties. Cyberview will be able to distribute substantial cash proceeds to its equityholders,” Cyberview Chief Executive Officer Seamus McGill said in a news release. “At the same time, IGT will be able to use these assets to expand and diversify its business opportunities.”

IGT Chief Operating Officer Steve Morro said the company is delighted to have reached the purchase agreement with Cyberview. “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,” Morro said in the statement.