LAS VEGAS, June 27, 2012 /PRNewswire/ -- Shuffle Master,
Inc. (NASDAQ Global Select Market: SHFL) ("Shuffle Master" or
the "Company") today announced that after careful consideration it
has decided not to proceed with the acquisition of Ongame Network
Limited.
(Logo: http://photos.prnewswire.com/prnh/20120304/AQ64113)
"We remain ardent believers in the growth opportunities for
online gaming and continue to focus intensely on the space," said
Gavin Isaacs, the Company's Chief
Executive Officer. "When we signed the definitive agreement
in February, we believed that general market conditions and
Ongame's sales pipeline supported the purchase being neutral or
modestly accretive to the Company's EBITDA. Business conditions in
Europe have deteriorated since
February and as a result, it has become evident to us that Ongame's
operations post-acquisition will not achieve the near-term results
we initially expected and will require a larger ongoing investment
than anticipated. Although we believe in its eventuality,
there is also uncertainty surrounding the timing of legalization
and the rollout of online poker in the U.S. at both the state and
federal levels," continued Isaacs. "Although we are
disappointed in the outcome, after thorough due diligence we
believe this is the right thing to do for our Company and our
shareholders. We will continue to pursue opportunities to
achieve our growth objectives in the online space, including
leveraging and protecting our strong intellectual property and
brands, and will investigate all prospects – both organic and
acquisitive – that make strategic and financial
sense."
As stated at its recent Analyst Day held in New York, Shuffle Master's near-term focus
will be to continue to strengthen and grow its core operations,
improve upon execution and invest in its business and ongoing
growth initiatives.
"We are continuing to invest in our own state-of-the-art content
platform, which capitalizes on our industry leading portfolio of
Proprietary Table Games, and remain committed to serving our
customers' online needs", said Louis
Castle, the Company's Chief Strategy Officer. "We are
considering other options for providing a business-to-business
online poker product consistent with our other online offerings for
web, social media and mobile applications."
"Over the last few months, I have been incredibly encouraged and
impressed by the quality, commitment and leadership of our team
throughout the entire due diligence process", said Isaacs. "Our
people are our greatest asset and they are the foundation upon
which we will continue to build our future. We thank the teams at
Ongame and bwin.party for their cooperation and professionalism
throughout this process."
About Shuffle Master, Inc.
Shuffle Master, Inc. is a leading global gaming supplier
committed to making gaming more fun for players and more profitable
for operators through product innovation, and superior quality and
service. The Company operates in legalized gaming markets
across the globe and provides state-of-the-art, value-add products
in five distinct categories: Utility products, which include
automatic card shufflers and roulette chip sorters; Proprietary
Table Games, which includes live games, side bets and progressives;
Electronic Table Systems, which include various e-Table game
platforms; Electronic Gaming Machines, which include video slot
machines; and newly introduced iGaming, which features online
versions of Shuffle Master's table games, social gaming, and mobile
applications. The Company is included in the S&P Smallcap 600
Index. Information about the Company and its products can be
found on the Internet at www.shufflemaster.com, or on Facebook,
Twitter and YouTube.
Forward Looking Statements
This release contains forward-looking statements within the
"safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. All statements included in this release other
than statements that are purely historical are forward-looking
statements. Forward-looking statements in this press release
include, without limitation: (a) the Company's belief in growth
opportunities for online gaming and its plans to pursue
opportunities in the online space, (b) the Company's intention to
explore alternative options for entry in the future U.S. online
poker market, and (c) the Company's intention to invest in its own
content platform and to consider other options for providing a
business-to-business poker product. The Company's beliefs,
expectations, forecasts, objectives, anticipations, intentions and
strategies regarding the future, are not guarantees of future
performance and are subject to risks and uncertainties that could
cause actual results to differ materially from results contemplated
by the forward-looking statements, including but not limited to:
(a) the inability to predict the evolution, timing or potential of
future online gaming opportunities and the relative risks and
rewards of opportunities in the online space versus other
opportunities, (b) the risk that laws and regulations will not
permit online poker in the U.S. and the inability to predict the
timing or content of changes in laws, and (c) future possible
changes in strategic direction to pursue initiatives that are more
attractive than investing in our own content platform or pursuing
the offer a business-to-business poker product. Additional
information on risk factors that could potentially affect the
Company's financial results may be found in documents filed by the
Company with the Securities and Exchange Commission, including the
Company's current reports on Form 8-K, quarterly reports on Form
10-Q and its latest annual report on Form 10-K, and are based on
information available to the Company on the date hereof. The
Company does not intend, and assumes no obligation, to update any
forward-looking statements. Readers are cautioned not to place
undue reliance on forward-looking statements, which speak only as
of the date of this press release.
SOURCE Shuffle Master, Inc.