AGS agrees $49m acquisition of Integrity Gaming

AGS agrees $49m acquisition of Integrity Gaming

Monday, December 17, 2018 Posted by News Team
Casino
Acquired business works with 33 casino partners in Texas and Oklahoma

Nevada-based games developer AGS has struck a deal to acquire regional slot machine operator Integrity Gaming in a deal valued at $49m. 

The deal sees AGS acquire all issued and outstanding common shares in Integrity at a price of CAD$0.46 per share, with the transaction to be funded using cash on the supplier’s balance sheet. The total $49m fee includes repaying $36m of Integrity’s outstanding debt. 

The acquired business installs and operates more than 2,700 slot machines in 33 casinos across Oklahoma and Texas, generating income through revenue share agreements with its partners. The bulk of its clients are Native American casinos. 

For the company’s 2017 financial year it generated revenue of $16m and earnings before interest, tax, depreciation and amortisation of $9m. Going forward, Integrity’s management team expects the business to see EBITDA grow by around 15% year-on-year. 

“The Integrity team has built a strong business, with an installed base of more than 2,700 Class III and Class II games in Oklahoma and Texas, partnering with some of the largest tribal gaming operators in the United States,” AGS senior vice president of slot products Andrew Burke said.

"AGS’ roots are in Oklahoma, and we are excited to invest further in a market we are so passionate about and where we already have strong sales and customer support networks,” he continued. “We look forward to working in partnership with the Integrity team to provide Integrity’s customers with an exceptional service and support experience and a continued focus on driving optimal game performance.”

Integrity interim chief executive Robert Miodunski added: “We strongly believe this is a good transaction for our company and that our customers will benefit from AGS’ deep roots in Oklahoma and its proven ability to successfully manage a large footprint of leased games to drive strong performance for gaming operators. 

“We look forward to working closely with the AGS team to ensure a smooth transition and continuity of service and support for our customers. I am proud of the Integrity team and the success we have achieved over our more than 20 years.”

Latest
Hard Rock Hokkaido

Hard Rock details plans for integrated Japanese resort

American football

Caesars strikes New York and NFL deals

Casino

AGS agrees $49m acquisition of Integrity Gaming

Scientific Games

Scientific Games settles Shuffle Tech patent case

Gaming Products & Services Directory

The essential directory for the gaming industry