- CryptoLogic Ltd., a major software developer for Internet gambling, says it has paid $6.1-million (U.S.) for a "significant stake" in Mikoishi Studios, an Asian game development and design company.
Mikoishi has strong capabilities in the mobile gambling market, CryptoLogic said Tuesday.
The minority-stake investment "creates a Singapore-based strategic partnership that will accelerate the pace of CryptoLogic's penetration of the huge Asia-Pacific marketplace," said CryptoLogic, which moved its headquarters from Toronto to Dublin the past year.
The company expects revenue from the deal to add to its earnings in 2008.
CryptoLogic also announced that it expects to achieve 2007 financial results at the upper end of the guidance it gave on Nov. 8.
"Finding the right partners has been essential to CryptoLogic's dramatic growth in Europe, and it will be key to CryptoLogic's future growth in Asia," CEO Javaid Aziz said in a release.
CryptoLogic said it bought a substantial minority equity stake in Mikoishi and has options to increase its ownership over time. CryptoLogic will also have representatives on Mikoishi's board of directors.
Earlier this year, the company also acquired a significant interest in 568 Network Inc., a developer and distributor of online casual games in Chinese.