After weeks of delays, Shuffle Master Inc. (SHFL) and Progressive Gaming Inc. (PGIC) signed a deal that sells all the table game products owned by PGIC to Shuffle Master. SHFL will also use PGIC’s Casino Jackpot Systems software on its tables.
SHFL will pay out $30 million in total: $19.8 million upon closing, a $3 million advance to integrate PGIC’s software system with SHFL tables, and annual earn-out payments through 2016.
PGIC said it had received a fairness letter from Roth Capital Partners estimating the net present value of the deal at $37.4 million to $46.5 million.
Analysts say the deal is good for both companies. PGIC will dramatically reduce its debt, while SHFL strengthened its hand by now controlling 80 percent of the world’s specialty table market.