Leading slot and system manufacturer International Game Technology is acquiring “certain operating assets” of rival system company Progressive Gaming International Corporation. The global operations of PGIC will be integrated with IGT’s respective offices in Europe, Asia, Australia, Latin America, Canada and the U.S. PGIC, which is the former Mikohn Corporation, is a partner of IGT in the creation of the TableID table game management system, a successful combination of system, RFID and optical reading technology. The company formerly owned a portfolio of specialty table games, including Caribbean Stud, which it sold to Shuffle Master Inc., and slot machines under the Mikohn brand, a division which was purchased by IGT. PGIC also maintains the progressive sign and meter business on which the Mikohn company was founded.
In recent years, PGIC was concentrating on marketing its slot and table game management systems, and incurred debt to IGT in connection with the TableID system. Its inability to repay that debt led to the sale of assets including PGIC’s system business, in what one analyst called a “forced liquidation.”
“Progressive Gaming was in violation of the terms of its debt agreement, with a private equity fund as well as the terms of its convertible note with IGT,” Sterne Agee & Leach analyst Nicholas Danna told Reuters last month.
IGT shares were down around 6 percent on the news of the acquisition, while PGIC shares reached an all-time low. However, IGT officials maintain that the acquisition makes sense, inasmuch as PGIC’s system technology will be merged into the IGT Advantage casino management system.
“We are very excited about the opportunity that this transaction provides to IGT,” said Rich Schneider, IGT’s executive vice president of product strategy. “The PGIC system product line is designed for somewhat different market segments as compared to our current IGT Advantage line. As such, the technology is an ideal complement to our current offering, allowing us to immediately increase our system install base, while providing us with a more complete product offering for future sales opportunities.
“Further, this gives us the ability to better service the PGIC system install base with our server-based sbX system offering.”