IGT has entered into an agreement to purchase substantially all the assets and business of Cyberview Technology, Inc., including cash on hand of approximately US$17 million, for a cash purchase price of US$76 million. The company will enter into a licence agreement with Cyberview that provides IGT access to certain Cyberview patents and technology not included in the asset purchase, for a one-time licence fee of US$9 million.
The transaction, subject to Cyberview shareholder approval and certain other closing conditions, is expected to close in the third calendar quarter of 2008. The US operations of Cyberview will be integrated with IGT in the US, and its UK-based operation, which focuses on the development of the Cyberview business in markets outside of the US, will be integrated with IGT-UK (Barcrest).
Cyberview Chief Executive Officer Seamus McGill commented, "This transaction is
beneficial to all parties. Cyberview will be able to distribute substantial cash proceeds to its equityholders. 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 added, "We are delighted to have reached this 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." (E-06.05.08)
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