Shuffle Master announced last week that it intends to buy Australia-based Stargames Limited for about $108 million.
The transaction includes an intent to purchase all of the outstanding shares of Stargames Limited for $1.55 AU ($1.14US) per share.
The sale is subject Stargames’ shareholder acceptance, regulatory approval and the satisfaction of certain other conditions. It is expected to close during the first quarter of 2006.
Stargames develops, manufactures and distributes a wide range of electronic gaming products to worldwide markets.
Its product offerings include Rapid Table Multi-Terminal Gaming Machines, and a broad line of Games, including its Vegas Star traditional video slot machines. The latter are designed most specifically for the Australian and Asian gaming markets.
The Rapid series of games, which Shuffle Master already distributes in the Western market, combines a live dealer with multi-terminal electronic wagering.
Stargames, with approximately 190 employees including 80 in design and development, generated $48 million in profitable gaming revenues in its fiscal year ended June 30, 2005.
"We look forward to Stargames joining the Shuffle Master family," stated Mark Yoseloff, Ph.D., chairman of the board and chief executive officer. "The marriage of their innovative multi-terminal products with our branded content will provide significant synergies, and their experienced management team and talented employees will superbly position our company to compete even more effectively in the fast-growing Australasian region.
"Their Rapid line of products is the clear industry leader in the region," Yoseloff continued.