Up-front cash of US$100 million and a final earn-out payment after 2012 the consideration
A controlling interest in Nasdaq-listed Asian group Gigamedia's online gambling software interests, on the market for some months, has been achieved by the French Internet gambling group Mangas Gaming.
Under the terms of the deal, the price of the 60 percent sale will be set at an upfront cash payment of US$100 million, and the fair market value of the business as an earn-out as of early 2012.
GigaMedia will continue to hold the remaining 40 percent interest with a put option to sell all or part to Mangas beginning in 2013. Beginning in 2015, Mangas will have a call option on any remaining shareholding held by GigaMedia. For both GigaMedia's put option and Mangas's call option, the price will be determined based upon then fair market value.
Gigamedia's Everest Poker subsidiary will join the Mangas Gaming family as its primary poker site as part of the deal. Everest Poker is a successful online operation and the official "felt" sponsor of the World Series of Poker.
"We are thrilled to have Everest Poker join the Mangas Gaming family with its media savvy and land-based casino shareholders and well known platform of gambling brands," said GigaMedia CEO Arthur Wang. "By partnering with Mangas, we can realize the full value of our poker and casino software business and share the enormous upside of this powerful combination in the large European community.
"This strategic alliance will create an online gambling powerhouse in Europe with top poker, sports betting and casino offerings."
In accordance with the terms of the strategic alliance, all Mangas poker players will be migrated to the Everest Poker platform, creating one of the largest poker player "liquidity" platforms in Europe.
Everest Poker will also be able to benefit from the top sports betting offering of Mangas Gaming. In addition, the combined user base of Everest Poker and BetClic - both leading brands in France - strongly positions the alliance to capture potential growth from the soon to be opened and regulated French market, one of the largest in Europe.
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