Amaya to offload Cadillac Jack to AGS

Amaya to offload Cadillac Jack to AGS

Monday, March 30, 2015

Amaya Gaming has revealed that it has reached an agreement to sell its Cadillac Jack B2B land-based gaming solutions business to AGS, a designer and manufacturer of gaming products on the casino floor, for C$476m (€346m/$375m). 

The deal will comprise a cash consideration of $461m, which remains subject to adjustment, in addition to a C$15m payment-in-kind notice with interest of five per cent per annum. The latter of these payments will be due on the eighth anniversary of the closure of the deal.

The agreement will end lengthy speculation over the future of Cadillac Jack within the wider Amaya operation. The gaming company in October of last year revealed that it was seeking alternatives for the asset, before taking it a step further in January this year by confirming that it was hoping to offload the business.

Amaya noted that it intends to use the proceeds of the transaction primarily for deleveraging, a process that will include the repayment of Cadillac Jack’s existing senior secured term loan and mezzanine debt. 

Subject to regulatory and antitrust approvals, as well as other customary closing conditions, the transaction is due to be completed before the end of the year.

“Cadillac Jack has grown its business significantly in new geographies and new markets under Amaya, and we are very proud of the efforts of its management and its employees,” Amaya chief executive officer David Baazov said.

“We are confident that combining Cadillac Jack with AGS presents a strong opportunity to expedite the company's growth strategy, while at the same time crystallising on the strong value created in the business to benefit Amaya's shareholders.”

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