Entertainment Gaming Asia (EGT) and Gaming Partners International (GPI) have announced that EGT’s wholly-owned Hong Kong subsidiary, Dolphin Products, has entered into a binding letter of intent to sell its assets to GPI.
Dolphin is a leading manufacturer and distributor of RFID and traditional gaming chips and plaques under the Dolphin brand to major casinos in Asia and Australia.
Under the terms of the letter of intent, GPI will acquire Dolphin’s fixed assets, raw materials and inventory, as well as its intellectual property, all for an estimated cash purchase price of $5.9m (E5.21m).
The purchase price will be paid out in installments over a 24-month period after closing. In addition, GPI will make earn-out payments to EGT over the next five years based on a varying percentage of net revenues on certain select sales to specific Asian casinos.
The asset sale represents Dolphin’s and EGT’s exit from the table game equipment business. As part of the transaction, Dolphin and EGT will each agree not to engage in the manufacture of table game equipment in competition with GPI.
The companies anticipate negotiating a definitive asset purchase agreement to effect the transaction at some point later this month.