Taiwanese Entertainment Company Acquires Grand Virtua

GigaMedia Limited of Taiwan announced Thursday that it has agreed to buy Grand Virtual, one of Internet gambling's oldest software developers, for nearly $32.5 million.

A press release from GigaMedia stated that the deal was an all-cash transaction and that the purchase was funded through existing working capital. The exact financials were not disclosed.

Founded in 1997, Boston-based Grand Virtual was one of the original software suppliers for the I-gaming industry and has remained a force with a core group of licensees.

GigaMedia did not comment on its plans for Grand Virtual, but with a background in entertainment services mainly focused on the music industry, adding gambling related software systems could broaden the company's portfolio.

According to the release, GigaMedia is counting on Grand Virtual to help increase the company's cash flow and earning and strengthen "the company's diversified entertainment product portfolio."

Whether the focus will continue to be in the online gaming sector was not specified.

"GigaMedia expects that Grand Virtual's application software will provide the company a secure, scalable technology platform that can be used to provide a range of entertainment services," the company stated.

GigaMedia has made a name for itself in the Taiwan market by providing a wide range of broadband and entertainment services. The company relies on a business plan that combines both land-based business practices as well as online and interactive tools for consumers to meet demands as technology continues to fuel change in the entertainment and new media sector.

In addition to its broadband ISP, GigaMedia operates the two largest music chains in Taiwan, Rose Records and Tachung Records. The stores are operated through GigaMedia's subsidiary G-Music.

The company offers Chinese language Web sites through its interactive service as well as home and corporate broadband service throughout Taiwan.

The company does not initially plan to move Grand Virtual and its 40 employees out of Boston.

Phone calls from IGN to both parties were not immediately returned.