Digiwave sells online gaming software to Korean firm

MANILA, Philippines - Digiwave Solutions Inc. (Digiwave), which is being acquired by publicly-listed Premiere Entertainment Philippines Inc., sold six of its online gaming software to Korean-based software firm Goodandgood Management, Inc. for $3 million (roughly P141 million).

Among the software purchased by Goodandgood are 7-Card Stud Poker, Texas Hold ‘Em Poker, Baccarat, Super 6, Baduki and Mahjong, all of which feature a RAndom Number Generator (RNG) and Associated Components Certification from the Gaming Associates Pty. Ltd., an Australian-based gaming consultant.

Digiwave president Justin Rojas said this ensures that the RNG generated results are uniformly distributed, statistically independent, and that the game symbols are fair and unpredictable.

Under the agreement, Goodandgood committed to buy a minimum of 300 to a maximum of 600 licenses of Digiwave’s software packages in a move aimed at cashing in on the gaming software’s business capability. The company plans to set up kiosks offering the said games in Korea and other parts of Asia.

The games also showcase high quality graphics, user-friendly interfaces and a help function that players can easily access for assistance. The software also allows multiple gamers to simultaneously play the game. Nine players can simultaneously play Texas Hold ‘Em in one game, five players each for Baduki and 7-Card Stud Poker, 100 each for Baccarat and Super 6, and four for Mahjong.

Aside from developing and distributing online gaming software, Digiwave also operates its own Pagcor e-Games Stations (PEGS). Its Baduki and 7-Card Stud Poker are now being used in all PEGS across the country.

Digiwave’s proposed share swap agreement with PEP is still pending the approval of the SEC. The deal calls for the issuance of about 1.003 billion PEP shares in exchange for 100 percent ownership of Digiwave amounting to P50 million (about $1.24 million).

The share swap is anchored on Digiwave’s projected net income as for the year ending Dec. 31, 2008 valued at P125.499 million given a P/E multiple of eight times, PEP earlier said.

PEP is engaged in entertainment, gaming and leisure activities. It produces full-length motion pictures and program content for free television, cable broadcast and video distribution. A subsidiary, Premium Events Palace Inc., is involved in land bingo parlor operations.

Digiwave, on the other hand, is an entertainment and IT company founded on Aug. 9, 2006. Its principal business is software development and provision, mainly for leisure gaming. The company uses South Korean technology and a Filipino workforce, and is looking to expand internationally.