Surprising Cancellation of the Ongame Acquisition Deal
The shocking news about Shuffle Master's withdrawal from the acquisition deal of Bwin.party Digital Entertainment's Ongame Network Ltd. received a lot of attention on Wednesday.
The Euro 19.5 million deal announced in March was annulled following a brief statement published on bwin.party's investor website.
Shuffle Master Inc's chief executive officer, Gavin Isaacs, subsequently addressed the public providing more information about the sudden withdrawal.
"It has become evident to us that Ongame's operations post-acquisition will not achieve the near-term results we initially expected and will require a larger ongoing investment than anticipated," he said in the statement.
"Although we are disappointed in the outcome, after thorough due diligence we believe this is the right thing to do for our Company and our shareholders. We will continue to pursue opportunities to achieve our growth objectives in the online space, including leveraging and protecting our strong intellectual property and brands, and will investigate all prospects – both organic and acquisitive – that make strategic and financial sense," Isaacs added.
Shuffle Master's statement assures players that company will continue to invest in its own content platform while considering other options for providing a B2B online poker product to comply with its other offerings from web, social and mobile applications.