A leading designer and supplier of electronic gambling machines, table products and interactive solutions to the gambling industry, PlayAGS will obtain Integrity Gambling for a money payment of CA$0.46 per share or a total trade value of US$49 million, including repaying US$36 million of Integrity’s outstanding debt.
Since PlayAGS will obtain Integrity Gambling, the trade is expected to be financed with cash on the balance sheet and to close in the first half of 2019, subject to approval by Integrity’s shareholders, receipt of important regulatory, court and third-party approvals, and other customary closing conditions. In financial 2017, Integrity generated earnings of approximately US$16 million and pre-synergy EBITDA of about US$9 million. As a result of revenue optimization as well as other efficiencies, the Company expects that adjusted EBITDA will grow at approximately 15% on an annualized and non-GAAP foundation, starting in fiscal 2019.
AGS Senior Vice President of Slot Products Andrew Burke said:
Integrity Interim Chief Executive Officer Robert Miodunski said:
Integrity owns slot machines fabricated by several slot providers, including AGS, in approximately 30 tribal casinos in Oklahoma and Texas and also provides direct sales of additional gambling products and supplies.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Blake, Cassels & Graydon LLP served as legal advisors to AGS.
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