International Game Technology (NYSE: IGT) has launched a cash offer to purchase all outstanding shares of Entraction Holding AB (NASDAQ OMX: ENT B) at a price equivalent to approximately $11.11 per share, or a total consideration of approximately $115 million. The Entraction Board of Directors has recommended the offer to its shareholders.
Established in 2000 and based in Stockholm, Sweden, Entraction operates one of the world's largest, legal online poker networks and has quickly grown into one of the leading suppliers of online gaming products and services. Entraction's scalable, robust business to business delivery platform contains over 4 million registered players, in partnership with over 60 operators. Additionally, Entraction provides a comprehensive suite of services needed to operate a successful gaming site such as content management, payment solutions, and fraud protection.
The successful acquisition of Entraction will enhance IGT's ability to grow its position within the rapidly growing Interactive gaming space. The combination is anticipated to provide Entraction with the global scale and reach to partner with gaming operators and land based casinos around the world. Subsequent to the closure of the transaction, Peter Astrom, Chief Executive Officer and President of Entraction, will continue to lead Entraction reporting directly to Patti Hart, Chief Executive Officer and President of IGT.
"This transaction represents a fantastic opportunity for our employees, customers, and shareholders alike," said Peter Astrom, President and CEO of Entraction. "Entraction will be able to utilize IGT's global scale and distribution to advance our short and long term objectives in exciting, new ways and we look forward to joining the IGT team."
"The addition of Entraction advances IGT's position in legalized Interactive gaming markets," said Patti Hart, President and CEO of IGT. "It strengthens our interactive portfolio by adding poker, bingo, casino, and sports betting. This combination will drive enhanced value for our global customers and partners. We are also thrilled to welcome the Entraction team as the newest members of the IGT family."
IGT expects to fund the transaction from available cash on its balance sheet. The tender offer is projected to close within IGT's current fiscal year and is subject to conditions customary for Swedish public companies as well as certain regulatory approvals.