Gaming Partners International Corp. has announced that it has entered into a binding letter of intent to acquire the assets of an Entertainment Gaming Asia Inc. wholly-owned subsidiary, Dolphin Products Ltd.
The Hong Kong subsidiary is a manufacturer and distributor of RFID and traditional gaming chips for major casinos in Asia and Australia.
Under the terms of the letter of intent, GPIC will acquire the assets of Dolphin Products including fixed assets, raw materials, inventory and intellectual property for an estimated cash purchase price of $5.9 million.
According to the press release from GPIC, the purchase price will be paid out in instalments over a 24-month period after closing, and GPIC has agreed to make earn out payments to EGT over the next five years.
“The asset sale represents Dolphin’s and EGT’s exit from the table game equipment business and, as part of the transaction, Dolphin and EGT will each agree not to engage in the manufacture of table game equipment in competition with GPIC,” said the firm in its announcement.
The transaction is expected to close in May, 2016.