Bloomberg News

GTECH, Medstroems Bid SK1.08 Billion for Boss Media (Update1)

February 01, 2008

Boss Media AB, the Swedish maker of software for online games, received a takeover offer from GTECH Corp. and Medstroems AB that values the company at 1.08 billion kronor ($169 million).

The offer of 19 kronor for each share is 26 percent higher than Boss Media's closing price yesterday, the joint bidders said today in a statement. Medstroems already owns 12.5 percent of Boss Media. GTECH is owned by Lottomatica SpA, the operator of Italy's national lottery.

Acquiring Boss Media will add online poker networks as well as casino games and bingo to GTECH's operations. The online gaming industry is forecast to grow as much as 20 percent every year in the next two years, according to Boss Media. Vaexjoe, Sweden-based Boss Media, which was founded by game players in 1997, reported sales of 312.3 million kronor last year.

``GTECH believes that a combination of GTECH and Boss Media would create a market leader in the regulated Internet gaming market,'' the company said in the statement. ``With a footprint covering 45 countries and more than 100 customers, GTECH would contribute significantly to Boss Media's worldwide growth.''

The offer period starts on Feb. 7 and expires on Feb. 27, the companies said.

To contact the reporter on this story: Niklas Magnusson in Stockholm at nmagnusson1@bloomberg.net

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net; Adrian Cox at acox2@bloomberg.net


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