Agreement includes intellectual property related to Elixir Gaming’s card
shuffling and card deck checking equipment. Companies also agreed to dismiss
all claims from outstanding patent infringement litigation.
Shuffle Master and Elixir Gaming Technologies jointly announced they have
entered into an agreement pursuant to which Elixir Gaming has sold to Shuffle
Master its intellectual property related to Elixir Gaming’s card shuffling and
card deck checking equipment, including the RandomPlus Shuffler, the ShufflePro
Shuffler, and the DeckChecker. In connection with this acquisition, Shuffle
Master will also purchase Elixir Gaming’s remaining finished-goods inventory of
products in this category
In addition, the companies have agreed to dismiss all
claims with prejudice pertaining to the outstanding patent infringement
litigation between them. This includes the release to Shuffle Master of a $3.0
million bond, plus accrued interest, that Shuffle Master posted in 2004 in connection
with an injunction that it received at that time.
The total consideration paid to Elixir Gaming for these
agreements is a base amount of $2.4 million, subject to adjustment related to
the precise final inventory, not to exceed $2.8 million.
Clarence Chung, Chairman and Chief Executive Officer of
Elixir Gaming, commented, “We believe the sale of our table game support
products to Shuffle Master places these assets with the best company to fully
exploit their market value and importantly, brings solid financial value to
Elixir Gaming. With the sale of this product line complete, Elixir Gaming can
focus management resources on addressing market opportunities that further our
strategy of expanding our installed base of electronic gaming devices on a
revenue participation model in developing Asian markets. We are also pleased to
reach a mutually amicable solution to the patent infringement litigation issues
that the two companies have been involved in for nearly five years.”
Timothy Parrott, Chief Executive Officer of Shuffle
Master, stated, “I’m thankful that as one of his final contributions as CEO,
Mark Yoseloff put the wheels in motion on this deal. I’m pleased that we can
finally put the litigation matter behind us and look forward to taking on the
Elixir Gaming product line, particularly the DeckChecker, which has proven to
be an important product in the Asian market. Further, we look forward to the
opportunity to work with Elixir Gaming in the future in supplying their growing
slot machine and e-table business throughout Asia.”
Shuffle Master buys Elixir IP
March 18, 2009
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