GEMed, a jointly-owned subsidiary of Gtech and Swedish investment firm Medstroms, has made an offer to acquire Boss Media.
The deal, valued at SEK 19.00 per share ($2.98), puts Boss' current value at an estimated SEK 1.08 billion. Medstroms is one of the original founders of Boss Media and remains its largest shareholder with a 12.5 percent stake.
In a prepared statement, Boss indicated that near the end of 2007 it was approached by "a number" of suitors interested in discussing an acquisition.
In response, Boss retained an adviser, HDR Partners, and granted the suitors access to conduct limited due diligence.
Boss has until Feb. 27 to accept the offer.
Gtech said it planned to make acquisitions that would complement and enhance the execution of its growth strategy. In July 2007, it acquired sports betting technology group Finsoft.
Currently, Boss Media supplies poker software to Svenska Spel, Sweden's gambling monopoly, and is working to implement a similar service with Austrian state-owned casino group Casinos Austria.
"When combined with Gtech, Boss Media will be afforded access to World Lottery Association customers in all parts of the world, which we believe will facilitate a faster roll-out of Boss Media's products and services on a global scale," said Medstroms Chief Financial Officer Jan Westholm.