Reno-based IGT has offered to purchase all outstanding shares of Stockholm, Sweden based Entraction Holding AB for roughly $11.11 per share, or $115 million. The Entraction Board of Directors has recommended the offer to its shareholders.
Entraction's legal online gaming business in Europe has more than 4 million registered gamblers in partnership with over 60 operators.
IGT said the acquisition would allow the company to grow within the rapidly expanding Internet gaming.
"The addition of Entraction advances IGT's position in legalized interactive gaming markets," IGT Chief Executive Officer Patti Hart said in a statement. "It strengthens our interactive portfolio by adding poker, bingo, casino, and sports betting."
JP Morgan gaming analyst Joe Greff said the purchase gives IGT a leg up in the Internet gaming space."Given the continued evolution of online gaming internationally and push for legalization in the United States, we believe the acquisition makes sense. It allows IGT to immediately grow its position in the market and get a solid footprint abroad, while also setting it up for potential longer-term gains domestically."
