International Game Technology PLC ("IGT") and Paradise Entertainment Limited ("Paradise"), through their respective subsidiaries have signed an agreement, whereby Paradise will transfer all of its electronic table game technology, patents and other intellectual property ("Table Game IP") to IGT, with certain exceptions for Table Game IP used exclusively in Macau. IGT will pay Paradise an upfront fee plus an ongoing earn-out based on placement of products utilizing the Table Game IP over a 15 year term. Closing of the agreement is subject to Paradise obtaining requisite shareholders' consents and approvals.
The agreement provides IGT with exclusive rights to Paradise's Table Game IP for the development, manufacturing, and distribution of Live and Random Number Generator ("RNG") electronic table games worldwide, except in Macau where Paradise subsidiary LT Game will remain the exclusive provider of its market leading electronic table game products.
"Through our agreement with Paradise, IGT is now uniquely positioned to capitalize on live and fully electronic table game opportunities in gaming jurisdictions around the world," saidVictor Duarte, IGT global chief product officer, gaming. "This pivotal expansion of our product portfolio empowers IGT to innovate in a new and growing segment while offering our customers an even broader range of best-in-class gaming solutions."
"This IP assignment agreement is a natural and important step in Paradise's productive relationship with IGT," said Jay Chun, chairman and managing director of Paradise Entertainment Limited. "IGT's global reach and strong relationships with operators around the world make IGT the ideal company to maximize the business potential of Paradise's Live and Random Number Generator patents and technology in the international market."