The slot-manufacturing sector of the industry is seeing a new round of consolidation, with acquisition announcements from two important slot-makers.
Amaya Gaming Group, Inc., a Canadian technology supplier that provides platforms for online gaming and video lotteries among other technology worldwide, has entered into a definitive agreement to acquire Georgia-based slot manufacturer Cadillac Jack, while the Austrian Gaming Industries subsidiary of Austria’s Novomatic Group announced it is acquiring the Unidesa slot-manufacturing division of Spain’s Cirsa Gaming Corporation.
Cadillac Jack has for years been a leading supplier of products and technologies for Class II Native American casinos, and recently has been making strides in developing and selling games for traditional Class III casinos. The company has gaming machine placements in more than 200 venues in the United States and Mexico.
Amaya will pay approximately $167 million to acquire 100 percent of the equity of Cadillac Jack and to retire its debt. The transaction will be funded through three separate cash payments. The first payment will be made upon closing of the acquisition, and will total approximately $147 million. Amaya will make two additional payments of $10 million each, on the first and second anniversaries of the closing of the acquisition.
“The acquisition of Cadillac Jack is a pivotal event for Amaya,” said Amaya CEO David Baazov. “We expect that the combined companies will leverage their distribution for game content in the key areas of online, mobile and land-based casinos. The acquisition creates immediate scale for Amaya’s operations and greatly enhances growth opportunities for both companies.”
As part of the acquisition, Gene Chayevsky, current chairman and chief executive officer of Cadillac Jack, will leave the company upon completion of the transaction. Baazov will assume the chairman and CEO role.
Mauro Franic, current chief operating officer, and Sigmund Lee, current chief technology officer, will remain in their positions at Cadillac Jack.
The transaction is expected to close by the end of the year.
Novomatic and Cirsa, meanwhile, issued a joint announcement that Novomatic has acquired the casino slot machine manufacturing and distribution activities of Unidesa, Cirsa’s manufacturing subsidiary.
Novomatic will receive all of Unidesa’s intellectual property rights, designs, patents, trademarks and inventory relating to the design, manufacture, sale and service of casino slot machines.
“This transaction is an important part of our B2B Division’s strategy to focus on the Spanish AWP market (bars, arcades and bingo halls) and gaming interconnectivity systems,” said Enric Barba, general manager of Unidesa.”
The value of the transaction was not revealed.
Jens Halle, managing director of the Novomatic’s Austrian Gaming Industries, said, “We are proud to officially announce a further large-scale acquisition during 2012. This agreement to acquire one of the leading international casino manufacturers and distributors further augments our product and service offering. Novomatic is committed to preserving the existing jobs in the business unit and welcomes its personnel as new members of the Novomatic family.”