TORONTO — Gambling software firm CryptoLogic Inc. has agreed to pay up to $20-million for the poker brand and related assets of Parbet.com, a popular Scandinavian online poker room.
Toronto-based CryptoLogic said Tuesday the deal was made through its WagerLogic subsidiary. CryptoLogic companies will license the Parbet assets, poker software, payment processing services, multilingual customer support and services to a private Maltese online gaming company that will operate Parbet.com.
WagerLogic will pay 9-million euros, about $13.8-million (Canadian) for the brand and assets, and potentially additional amounts up to a maximum 4-million euros, or $6.1 million (Canadian), contingent on improved performance of the assets over six months.
The Parbet assets now generate about $7-million (U.S.) in revenue annually. CryptoLogic said it expects the licensing arrangement to add about $2-million to 2007 earnings.
“We have advanced several key strategies today,” Lewis Rose, CryptoLogic's CEO, said in a release.
“First, we have invested a small portion of our significant cash balance to immediately increase return to shareholders. Second, we have built on our acknowledged strength in the European poker market. Third, we have advanced our strategy to own or control strategic brands in order to increase their success and earn greater returns.
“And we still have more than ample resources to take advantage of additional strategic opportunities in the future,” said Mr. Rose.
© Canadian Press
