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IGT Bidding for Entraction Poker Network

Written On  5/6/11 By staff writer Emily Apontif :

wedish online gambling company could go for $115.3 million
According to a report on the Dow Jones newswire service International Game Technology, which has machine manufacturing and online gambling software interests, has made an offer to purchase the Swedish internet gambling company Entraction for SEK700 million (about $115.3 million).
The board of Entraction has unanimously recommended to shareholders that the offer be accepted, and news of the possible sale pushed the share price up almost 30 percent.
In a statement, the Swedish-based company clarified that the offer is “...conditional upon IGT becoming owner of more than 90 percent of the share capital in Entraction and all necessary regulatory approvals being granted.”
IGT spokesmen said that the deal would be funded from available cash on IGT's balance sheet.
The proposal follows the news last week that IGT has agreed to sell its Barcrest subsidiary to Scientific Games for $54 million.
Entraction’s poker network includes sites owned by Victor Chandler and Devilfish Poker, recently acqquired by the Weather Lottery. The network currently has a seven-day average of 1440 cash game players according to the independent online poker monitor PokerScout.
Entractions current financial results have been disappointing, with Q1 2011 profits sinking by almost 22 percent year-on-year to SEK8.1 million; profits declining by 26.5 percent to SEK7.84 million and net sales down 16 percent.

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