A leading designer and supplier of electronic gaming machines, table products and interactive solutions for the gaming industry, PlayAGS will acquire Integrity Gaming for a cash payment of CA$0.46 per share or a total transaction value of US$49 million, which includes repaying US$36 million of Integrity’s outstanding debt.
Since PlayAGS will acquire Integrity Gaming, the transaction is expected to be funded with cash on the balance sheet and to close in the first half of 2019, subject to approval by Integrity’s shareholders, receipt of applicable regulatory, court and third-party approvals, and other customary closing conditions. In fiscal 2017, Integrity generated revenue of approximately US$16 million and pre-synergy EBITDA of approximately US$9 million. As a result of revenue optimization and other efficiencies, the Company expects that adjusted EBITDA will grow at approximately 15 percent on an annualized and non-GAAP basis, beginning 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 manufactured by various slot suppliers, including AGS, in approximately 30 tribal casinos in Oklahoma and Texas and also offers direct sales of other gaming products and supplies.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Blake, Cassels & Graydon LLP served as legal advisors to AGS.