New-York listed International Game Technology PLC has announced it has signed an agreement to acquire all of Paradise Entertainment Limited’s electronic table game technology, patents and intellectual property.
Under the agreement, Paradise will transfer all of its electronic table game technology, patents and other intellectual property to IGT, “with certain exceptions for Table Game IP used exclusively in Macau.”
IGT will pay an upfront fee plus an ongoing earnout over a 15 year term.
In a filing to the Hong Kong Stock Exchange, Paradise Entertainment said the agreement with IGT is necessary given the highly entrenched local gaming market in the US.
“Being a new-comer to the US gaming market, and in view of the fierce competition from the well-established gaming machines manufacturers in the US, it is a challenging task for the Group to open up this market in view of the substantial resources and effort required.”
“With IGT’s established effective game distribution platform and extensive market penetration worldwide, the Board believes that the grant of the exclusive rights to IGT will help further boost the sales and popularity of the Licensed Products and subsequently help increase the revenue base and generate a scaleable income to the Group under the earn-out payments arrangement in the years to come.”
The agreement is subject to Paradise obtaining shareholder approvals.
“Through our agreement with Paradise, IGT is now uniquely positioned to capitalize on live and fully electronic table game opportunities in gaming jurisdictions around the world,” said Victor Duarte, IGT global chief product officer, gaming.
“This pivotal expansion of our product portfolio empowers IGT to innovate in a new and growing segment while offering our customers an even broader range of best-in-class gaming solutions.”
“This IP assignment agreement is a natural and important step in Paradise’s productive relationship with IGT,” said Jay Chun, chairman and managing director of Paradise Entertainment Limited.
“IGT’s global reach and strong relationships with operators around the world make IGT the ideal company to maximize the business potential of Paradise’s Live and Random Number Generator patents and technology in the international market.”