Leading online gambling software developer, CryptoLogic, through its wholly-owned WagerLogic subsidiary, has signed an agreement to purchase the poker brand and related assets of popular Scandinavian online poker room Parbet.com.

CryptoLogic companies will license the Parbet assets, poker software, payment processing services, multi-lingual customer support and services to a private Maltese online gaming company that will operate Parbet online room.

The purchase agreement includes all rights to the Parbet brand name, associated domain names such as Parbet, customer lists, databases and players’ cash on deposit. Under the agreement, WagerLogic will pay EUR9 million for the brand and assets, and
potentially additional amounts up to a maximum amount of EUR4 million, contingent on improved performance of the assets over a six-month earn-out period.

The Parbet assets currently generate approximately US$7 million in revenue annually. CryptoLogic expects the licensing arrangement to add approximately US$2 million to 2007 earnings.

This acquisiton also extends the company’s brand ownership and management strategy, which it has used very successfully with the award-winning InterCasino and InterPoker brands and related brands, such as ExtremePoker. Under this strategy, WagerLogic owns or controls key brands that it licenses to third party operators, along with its full suite of online gaming software, network services, and marketing support services, in order to generate higher revenue to WagerLogic.

Subject to certain closing conditions, the agreements are expected to be completed by January 15, 2007, at which point Parbet players will be transitioned to the WagerLogic poker network and begin enjoying its benefits immediately.

“We continue to demonstrate our commitment to be at the forefront of the next wave of poker growth in Europe,” said AJ Slivinski, WagerLogic’s Managing Director. “In December we launched two new poker sites. In mid-January, we will launch three more poker sites: Parbet, Betsafe and Playboy Poker.“

This entry was posted on Wednesday, January 10th, 2007 at 10:09 am and is filed under Online Poker, Poker Industry News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.