PokerTek, Inc. to be acquired by Multimedia Games

30 April 2014

MATTHEWS, North Carolina -- PokerTek, Inc. (PTEK) ("PokerTek") announced today that it has entered into a definitive agreement and plan of merger with Multimedia Games, Inc., a subsidiary of Multimedia Games Holding Company, Inc. (MGAM) (together, "Multimedia Games"), pursuant to which Multimedia Games has agreed to acquire PokerTek at a price of $1.35 per share in cash.

Completion of the transaction is subject to the approval by holders of a majority of the Company's common shares, the receipt of certain gaming approvals, and other customary closing conditions. PokerTek's Board of Directors unanimously approved the merger agreement with Multimedia Games and has recommended that the Company's shareholders adopt the merger agreement. Assuming the satisfaction of conditions, the transaction is expected to close in calendar 2014.

Mark Roberson, PokerTek's Chief Executive Officer, stated, "Combining with Multimedia Games provides our shareholders with the opportunity to receive a healthy premium for their shares and is an ideal situation for our customers, employees and other commercial partners. PokerTek and Multimedia Games share a similar operating philosophy and culture, focusing on superior customer service and delivering products that generate strong returns for casino operators. As part of the Multimedia Games organization, we believe further development of innovative products and solutions will address the growing demand for eTables from casino customers and players worldwide."

Pat Ramsey, Chief Executive Officer of Multimedia Games, added, "With eTable growth accelerating in domestic and international casinos, acquiring PokerTek represents an excellent opportunity to expand our product portfolio. We believe the PokerPro product is an excellent complement to our existing business and that we can expand the penetration of PokerPro in North America by leveraging our strong domestic manufacturing, sales and service capabilities. Further, with a growing installed base of gaming positions internationally, this transaction represents a solid entry point to further diversify our revenue and geographic base. This transaction reflects Multimedia Games' strategic emphasis on offering leading products that resonate with our customers' players and increasing our share of the casino gaming floor."

Joe Lahti, Chairman of the Board of Directors of PokerTek added, "The team at PokerTek has done an outstanding job over the past several years turning the company around financially, building a dominant market position and cultivating strong customer relationships. Merging with Multimedia Games is a positive event for our shareholders and marks the beginning of an exciting new chapter for PokerTek."

Transaction Details

Completion of the transaction is subject to the approval by holders of a majority of the Company's common shares, the receipt of certain gaming approvals, and other customary closing conditions (which is not conditioned on financing). Assuming the satisfaction of conditions, the transaction is expected to close in calendar 2014.

Burrill Securities acted as financial advisor, and Morse, Zelnick, Rose & Lander, LLP acted as legal advisor, to the Company.

About PokerTek, Inc.

PokerTek, Inc. (PTEK) is a North Carolina corporation headquartered in Matthews, NC. We design, manufacture and market electronic table games and related products for casinos, cruise lines, racinos, card clubs and lotteries worldwide. We distribute our electronic table games using an internal sales force, complemented by distributors and sales agents in select geographic areas, generally on a recurring revenue participation model, recurring revenue fixed license fee model or as a sale of hardware combined with recurring license and support fees.

About Multimedia Games

Through its wholly owned subsidiary, Multimedia Games, Inc., Multimedia Games Holding Company, Inc. ("Multimedia Games") develops and distributes gaming technology. The company is a creator and supplier of comprehensive systems, content and electronic gaming units for Native American and commercial casinos. Revenue is derived from gaming units in operation on revenue-sharing arrangements as well as from the sale of gaming units and systems that feature proprietary game content and game themes licensed from others. Multimedia Games also supplies the central determinant system for the video lottery terminals ("VLTs") installed at racetracks in the State of New York. The company is focused on pursuing market expansion and new product development for commercial and tribal casinos and VLT markets.

Related Links

Featured Vendors
Casino City Press
Action Skill Games
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Action Skill Games
Pennsylvania Skill Game Leaders: Serving the Vending Industry for over 30 years
Regulatory Management Counselors, PC
Mhetadata Marketing
Regulatory Management Counselors, PC
Over 35 years of experience serving the legal and regulatory needs of casino industry clients
Mhetadata Marketing
Marketing Automation automate your direct mail programs and save money doing it
Game King Slots
Slot Machines Unlimited
Game King Slots
New or reconditioned slot machines, parts & repair. Top manufacturers - WMS, IGT, Bally and more!
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
Betson Imperial Parts & Service
Omnigo Software
Betson Imperial Parts & Service
You one stop shop for all your gaming and OEM needs!
Omnigo Software
Provides a fully integrated end-to-end Incident Reporting and Risk Management solution
Nathan Associates, Inc.
TribalNet
Nathan Associates, Inc.
One of the oldest and most respected economic consulting firms in the U.S.
TribalNet
20th Annual TribalNet Conference and Tradeshow Nov 11-14, 2019 Gaylord Opryland Resort Nashville, TN
Casino Network
Gaming Tickets, Inc.
Casino Network
20+ years experience selling refurbished slot machines, parts & glass for all major brands
Gaming Tickets, Inc.
35 years in the gaming industry - premium quality slot tickets, lottery tickets on time under budget
Casino Schedule Ease
Rymax Marketing Services, Inc.
Casino Schedule Ease
Removing the chaos from casino staff scheduling one property at a time
Rymax Marketing Services, Inc.
Leader in creating award winning player & employee loyalty programs & events proven to increase ROI
Anti-Counterfeit and Currency Expo
Anti-Counterfeit and Currency Expo
Anti-Counterfeit & Currency Expo is the global platform for cash management professionals.


Your Guide to 16,929 Gaming Industry Suppliers