Amaya to `Acquire Diamond Game Enterprises for $25m
Amaya Gaming Group announces that it has entered into a definitive purchase agreement to acquire 100 percent of the issued and outstanding securities of private, arms-length company Diamond Game Enterprises, a designer and manufacturer of gaming-related products for the global gaming and lottery industries.
Diamond Game began as an innovative leader in the Class II Native American casino market but since 2004, has expanded into public gaming, commercial casino, racetrack and bingo markets utilizing the Lucky Tab II and its succesor LT-3 gaming machine. The company has approximately 1,800 machines in over 40 locations across seven jurisdictions.
The Diamond Game Lottery Products division creates innovative products for the public gaming and charity markets, most notably its patented LT-3 instant ticket vending machine, which dispenses pull tab/break open or scratch tickets while simultaneously displaying the results of each ticket on a touchscreen video monitor.
Diamond Game has two existing lottery contracts with machines deployed in Maryland and Ontario. The company’s Casino Products division develops products for the VLT, Class II bingo, Class III commercial casino and racetrack markets.
Amaya anticipates the transaction will provide a number of effective synergies by integrating the company’s extensive games library into Diamond Game’s lottery technology; leveraging Amaya’s network of relationships to provide new revenue opportunities for Diamond Game; and leveraging Diamond’s US lottery relationships for expanded deployment of Amaya’s suite of products.
Upon closure of the transaction, Amaya is expected to pay US$25 million, subject to customary purchase price adjustments, to acquire 100 percent of the equity of Diamond Game and to retire its debt. Amaya will finance the consideration through cash on hand. Closing of the transaction will be subject to Amaya receiving all necessary licensing and regulatory approvals and is expected to occur during the fourth quarter of 2013.
