Wagerworks takeover deal - all the details

Details on the IGT - Wagerworks takeover reported in our earlier bulletins were released this week, with the agreement centred on an all cash merger.

International Game Technology spokesmen said that the company expects the transaction to be completed by end August 2005.

Under the terms of the proposed transaction, the total consideration paid by IGT would be approximately $90 million, subject to a working capital adjustment. Pending final purchase accounting adjustments including amortisation of lifed intangibles and in-process research and development, IGT estimates the transaction to be up to $0.02 dilutive to earnings in both fiscal 2005 and 2006.

WagerWorks has distinguished itself as a gambling software company with its content portfolio and strict operation policy of not conducting business with operators who knowingly process gambling transactions from the United States. WagerWorks' customers include BSkyB, Rank, Blue Square, Paddy Power, Virgin and World Poker Tour. The company also has important premium content relationships with Sony (including online internet rights to Wheel of Fortune), Hasbro and FremantleMedia.

TJ Matthews, IGT's Chief Executive Officer said, "The acquisition of WagerWorks will help the distribution of IGT game content across new channels and mediums including the internet, mobile devices, and interactive television."

Paul Miltenberger, Chief Executive Officer for WagerWorks said, "We've had a longstanding relationship with IGT and our approach to the industry, particularly as it relates to content, is complementary."