The online gaming software developer and the world\’s leading provider of internet bingo solutions have announced their intention to enter into a business combination as agreed to in a binding Letter of Intent.
Under the proposed business combination, Chartwell will acquire Parlay by way of a plan of arrangement that will issue 0.75 common shares of Chartwell for each issued and outstanding common share of Parlay.
The definitive agreement to be entered into by Chartwell and Parlay will be subject to a number of conditions, including court approvals, stock exchange approvals and the approval of the shareholders of Parlay at a meeting expected to be held in October 2006.
In commenting on the proposed merger, Darold H. Parken, President and CEO of Chartwell said: “Chartwell and Parlay are a perfect fit. In an ever expanding remote gaming industry, Chartwell and Parlay share a unique and highly successful business model and enjoy great reputations. Our combined entity will be a much stronger and effective competitor and our customers will benefit from the merger of our best-of-breed gaming applications and our talented group of people. We are very excited about joining forces and working with the people at Parlay to build the world\’s most comprehensive and flexible gaming software system, while maintaining our independence from the operation of any gaming business.”
Also commenting on the proposed merger, Scott White, President and CEO of Parlay added: “Consolidating two growing businesses like Parlay and Chartwell is the first step in our joint creation of a global technology powerhouse. Leveraging our respective excellence and leadership in technology, our common employment cultures, our existing and prospective customer bases and our depth in human resources, we are confident in our ability to develop, license and support a world-class suite of e-gaming products. It is our intention to create a new company which will generate excellent value for our stakeholders, and as our industry moves into the mainstream over the coming years, the fact that we will not compete with our customers will be our most important value proposition.”
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