BETandWIN.com to Buy Ongame Network

In a deal worth over $625 million, Austria-based BETandWIN.com (BWIN) announced Friday that it has agreed to buy the Ongame Network, operator of PokerRoom.com, the internet’s third largest poker room.

BWIN will pay 40 percent of the purchase price in cash, 40 percent with stock (BWIN is listed on the Vienna stock exchange), with the rest paid by 1Q 2009, although the amount could fluctuate based on Ongame’s performance.

The deal is contingent on Ongame achieving net revenues of at least $105.90 million and minimum earnings before depreciation, taxation, and amortization of $568.70 million.

There has been no indication yet as to whether or not all of the affected poker rooms, namely PokerRoom.com, HollywoodPoker.com, and Eurobet.com, will see any change in their look or software.

Originally published December 19, 2005