PartyGaming settles dispute with Empire Online, to pay £145 million |
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Thu, 16 Feb 2006 02:10
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LONDON: Online gaming company PartyGaming Plc. has agreed to a settlement of its legal dispute with internet casino and poker site Empire Online by paying 145 million pounds in cash for certain assets.
Empire Online had sued PartyGaming, its former partner, in December last for breach of contract after the latter ringfenced its own poker players from "skin companies", which included Empire Poker.
PartyGaming stated that it has agreed to acquire the business, assets, player databases and intellectual property relating to EmpirePoker and AceClub.com, which includes the EmpirePoker brand and the EmpirePoker website.
Its statement added that the acquisition brings its skins strategy to a close and consolidates its leading position in online poker ahead of the launch of the fully-integrated, Party-branded platform.
The company said the deal is conditional on approval from Empire's shareholders. There will be a non-recurring charge in the year ended 31 December.
Empire Online said shareholders representing 56 per cent of its shares have backed the deal.
PartyGaming had originally dismissed Empire Online's claim, saying it is "clutching at straws". However, it appears that at a side-hearing sought by Empire Online, a British judge had highlighted the strength of its case and had instructed the two companies for an out-of-court settlement.
Empire Online's chief executive Noam Lanir said the company will consider ways to make use of the funds from the deal for future growth.
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