Chartwell and Parlay Are Merging

[Vallerius]

Consolidation of the online gambling industry continued today as two Canadian-based software developers, Chartwell Technology, Inc. and Parlay Enterainment, Inc. announced they have agreed to a merger deal. Chartwell provides software to more than 50 global online gambling operations, including Sportingbet brands, Eurobet, UKBetting and VC Casino, while Parlay specializes in interactive bingo products and boasts such clients as Virgin, MSN, AOL and Yahoo!
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Both companies are publicly traded on the Toronto Stock Exchange (Parlay on the Venture Exchange). The deal will be enacted by Chartwell issuing 11.2 million shares (.75 shares for each Parlay share), which will give Parlay shareholders ownership of about 37.5 percent of the newly merged company, which will have a market capitalization of about $81 million. The company will retain the Chartwell name, but it appears that leadership of the company will be balanced, with the CEOs of each company serving in co-CEO capacities and two founders from each company serving as directors.
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Chartwell reported $16 million in revenue in fiscal 2005 while Parlay reported $5.9 million in fiscal 2005.
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Does anybody promote Chartwell or Parlay sites? I assume there should be minimal if any bearing on the affiliate programs, but I'll look further into the matter if you would like.

[ntaus]

Hi Vallerius,

Yes, please.

I promote everything Parlay except bingo. Slots Village, Winward Casino, and Winward Mobile and would appreciate anything you learn.

No doubt there will also be updates from Parlay themselves.

Thank you for contributing to GPWA.

ntaus

[Vallerius]

I just spoke to Darold Parken, CEO of Chartwell. Here's what I've learned:

Ultimately, the merger of Chartwell and Parlay will result in a single back office that will be able to manage the individual products of each company. Both companies recognize that that are certain things that one company does better than the other and certain things that the other company does better than the first. The goal is to take the best offerings from each company and eventually integrate them into one unit managed by a sort of hybrid component.

The newly merged company will take the name of Chartwell, but over the next year it will consider rebranding. But Parken says that the Parlay name is so strongly recognized with regard to bingo that the Parlay brand name is certain to be retained for the bingo products.

As far as affiliate programs are concerned, it does not appear that the merger should affect them much, at least in the near to mid term. Chartwell does not operate the websites of any of its licensees and therefore does not have a relation to any of its operators affiliate programs.

I have tried to reach Scott White, CEO of Parlay, but have not been able to reach him just yet. I suspect that the same is true for Parlay. I'm not yet sure if the company operates the websites of any of its licensees, but even if it does I do not see how the referral programs would be affected. Perhaps in the long run the individual sites might be improved through the benefit of better software coming out of the merger, but all in all, the structures relating to the promotion of these sites ought to remain the same.