Jackpot Digital Acquires PokerTek Assets

Jackpot Digital (formerly known as Las Vegas from Home Entertainment Inc.) announced the acquisition of Multimedia Games' PokerTek assets for a $5.4 million cash consideration of which $2.25 million will be paid upon closing. The remainder will be payable through an earn-out formula, which could boost the consideration to $7.5 million. PokerTek games are distributed based on a recurring revenue participation model, recurring revenue fixed license fee model or the sale of hardware in combination with recurring license and support fees. "In addition to being located at land based gaming venues, the [PokerTek] electronic tables are used extensively on cruise ships where our mobile games are already played,” said, Jake Kalpakian, president and chief executive officer of Jackpot Digital. “By merging the Company's current proprietary gaming platform with the assets that are being acquired, the Company expects to increase revenues significantly.”