In a surprise move, Shuffle Master has today pulled out of a pending takeover of bwin.party's Ongame Network. Bwin.party will now continue to look for a suitable buyer for the network.
In a surprising turn of events, Shuffle Master has today announced its withdrawal of a pending takeover of bwin.party's Ongame Network.
The Las Vegas-based slot machine manufacturer and gaming operator in March this year announced to have reached a deal with bwin.party to take over the Ongame Network
for an agreed sum of €19.5 million plus €10 million over a five-year period.
Shuffle Master reportedly bought Ongame to prepare for the introduction of legal online poker
in the United States, but surprisingly announced today via the London Stock Exchange that the deal is now off.
According to a press release
, the two parties have "mutually agreed no to proceed with the proposed transaction," but the details of the collapse of the takeover remain unclear.
Bwin.party has confirmed the cancellation of the pending deal, and will now continue its search for a suitable buyer of what the company continues to describe as "a surplus asset".
"The sale of surplus assets, including Ongame, remains a core part of bwin.party's strategy," the press release reads.
"Bwin.party is re-engaging with other third parties that have expressed an interest in acquiring Ongame," it adds.
The Ongame network
was first acquired by Bwin in December for a prize of more than €500 million. Since then, the company has merged with PartyGaming
to create bwin.party digital entertainment, and it has since tried to sell off Ongame in order to focus exclusively on the PartyGaming online poker client.