GigaMedia agrees sale of 60% of Everest Poker

Taiwan-based gaming software and services company GigaMedia Ltd(NASDAQ:GIGM) declared on Wednesday that it has agreed to sell 60% ofEverest Poker, its online gambling software business, to French onlinegaming and sports betting company Mangas Gaming SAS.

Under the terms of the agreement Everest Poker will join Mangas Gamingas its primary poker site.

The French company will pay an initial USD100m plus a further sum aftera valuation in 2012, depending upon the fair market value of thebusiness at that time.

GigaMedia expects to book a substantial one-time gain upon the sale.GigaMedia will continue to hold 40% of Everest Poker but has an optionto sell all or part of its stake to Mangas from 2013. Additionally,from 2015 Mangas will have a call option on any remaining shareholdingheld by GigaMedia.