Shuffle Master buys Elixir IP
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.”