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Jackpot Digital Acquires PokerTek business
Tuesday July 7,2015 : MULTIMEDIA GAMES SELL OFF POKERTEK ASSETS
Jackpot Digital to merge assets with proprietary platform
Jackpot Digital (formerly Las Vegas from Home Entertainment Inc.) has acquired the assets of Multimedia Games’ PokerTek business for a $5.4 million cash consideration of which $2.25 million will be payable on closing.
The balance will be paid through an earn-out formula which may increase the consideration to $7.5 million, the company said.
PokerTek distributes its games on a recurring revenue participation model, recurring revenue fixed license fee model, or as a sale of hardware combined with recurring license and support fees which Jackpot Digital says will provide a significant boost to its bottom line while providing synergist opportunities with its existing mobile games further providing the ability to build unique features and products.
Assets included in the agreement comprise domain names, inventory, marketing material, patents, software and all trademarks along with existing licensing contracts with third parties related to the business.
"In addition to being located at land based gaming venues, the [PokerTek] electronic tables are used extensively on cruise ships where our mobile games are already played,” Jake Kalpakian, president and chief executive officer of Jackpot Digital said. “By merging the Company's current proprietary gaming platform with the assets that are being acquired, the Company expects to increase revenues significantly.
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