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PARLAY SHEDS NON-CORE ASSETS
Top Canadian online bingo software developer and provider Parlay Entertainment Inc., has announced the completion of a series of transactions which provide for the divestiture of its non-core assets. The total consideration to Parlay from the divestiture is USD$2 810 000 and the initiative mainly involves US-facing licensees recruited prior to the enactment in October 2006 of the Unlawful Internet Gambling Enforcement Act.
Parlay's statement explains that since early 2005 the company has increasingly diversified in non-U.S. regions such as the U.K. and Europe. As a result, certain assets which include licensing arrangements with what the company describes as "legacy" customers in non-regulated jurisdictions have become less important.
Accordingly, the company has, from May 1 this year, shed these assets and agreements and will no longer offer its software to gaming operators who do not operate within regulated jurisdictions. The divestiture includes the sale of some software license agreements, as well as the sale of non-exclusive, limited and personal rights in some of Parlay’s older software technologies together with a commitment that Parlay provide limited support arrangements during a transitional period.
The sales have garnered a total of just over USD$ 2.8 million, and the company will no longer accrue royalty revenues from the sold assets. Royalties earned up to May 1 2008 will be payable under regular commercial terms.
Parlay CEO Scott White comments: “Parlay’s management has been mindful of the uncertainty created by recent legislative changes and as a result, has reviewed both the composition of and the jurisdictions which are the focus of its existing customer base.
"The divestiture of these assets provides excellent value for Parlay’s shareholders while at the same time allowing Parlay to focus all of its future efforts on the development, marketing, licensing and support of Internet gaming technologies into regulated jurisdictions”.
Some of the world's most recognisable bingo brands are powered by Parlay, including Virgin, Yahoo!, Paddy Power, Bet24, NetPlay TV, Bingos.com and the St. Minver bingo network.
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