Party Gaming to Purchase World Poker Tour
British online gambling giants Party Gaming announced a major business coup this morning by revealing that they had agreed to buy the U.S.-based company WPT Enterprises for $12.3 million.
The acquisition, which is set to be completed in the fourth quarter of 2009, will see PartyGaming pay a minimum of $3 million to the World Poker Tour’s vendors over the next three years as part of an ongoing revenue share relating to the bought assets.
In a press release issued late yesterday evening, WPT Enterprises revealed that they had agreed to sell all of their operating assets – excluding cash, investments and several other unnamed assets – to the PartyGaming-owned Peerless Media Ltd.
The release came on the back of a statement made by PartyGaming last month in which they revealed the company was looking to make further acquisitions following the purchase of bingo website operator Cashcade for almost $120 million.
Certainly, the purchase of WPT Enterprises has seen PartyGaming prove true to their word, and their latest acquisition was made all the more important after rival company 888.com also announced they were close to sealing a new business deal of their own.
The acquisition of WPT Enterprises represents the first time in three years that PartyGaming has entered the US market after the formal outlawing of online gaming in America forced them to cease their US operations in 2006.
With the precedent for UK and European companies now set, expect many more foreign investors to follow PartyGaming into America in the coming months.