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On the surface, this looks like a decent acquisition: 2x revs, not dilutive, and strengthens IGT's online positioning.

"The addition of Entraction advances IGT's position in legalized Interactive gaming markets.  It strengthens our interactive portfolio by adding poker, bingo, casino, and sports betting. This combination will drive enhanced value for our global customers and partners."

- Patti Hart, President and CEO of IGT

"This transaction represents a fantastic opportunity for our employees, customers, and shareholders alike. Entraction will be able to utilize IGT's global scale and distribution to advance our short and long term objectives in exciting, new ways and we look forward to joining the IGT team."

Peter Astrom, President and CEO of Entraction


  • IGT launched a cash tender to purchase all the outstanding shares of Entraction Holding AB for $11.11/share ($115MM)
  • The Entraction board has recommended the transaction to its shareholders
  • "Established in 2000 and based in Stockholm, Sweden, Entraction operates one of the world's largest, legal online poker networks and has quickly grown into one of the leading suppliers of online gaming products and services."
    • Over 4 million registered players
    • Partnerships with over 60 operators
    • "Provides a comprehensive suite of services needed to operate a successful gaming site such as content management, payment solutions, and fraud protection."
  • "IGT expects to fund the transaction from available cash on its balance sheet. The tender offer is projected to close within IGT's current fiscal year and is subject to conditions customary for Swedish public companies as well as certain regulatory approvals."


  • Their offer for Entraction serves to further IGT's objective of growing their international and online gaming business
  • Entraction has 40 turnkey customers and 20 poker customers that use their technology
  • Premature to estimate impact on IGT's FY11 guidance, but the acquisition will enhance IGT's online business in FY12
  • No change to guidance



  • What is the status of Entraction's remake of their poker product?
    • Too early for IGT to have input on Entraction's platform
    • According to IGT's due diligence, they believe that the platform is good base for online poker
  • This transaction is in support of an ex-US strategy. It's really about participating in existing legal markets.
  • They do generate positive cash from operations and have roughly $54MM of revenue
  • It's really important for them to have the regulatory approvals and they believe that they will be able to take this platform into markets where Entraction didn't have the size and financial ability to pursue. Also complements their existing suit of products that they already have in order package a complete online casino offering. 
  • Entraction has not pursued other takeout opportunities to IGT's knowledge. Have just north of 20% of the shareholders that have already indicated support for the transaction.