Amaya increases lottery footprint in North America
MONTREAL, Feb. 14, 2014 /CNW/ - Amaya Gaming Group Inc. ("Amaya" or the "Corporation") (TSX: AYA), an entertainment solutions
provider for the regulated gaming industry, announced today that it has
closed its previously announced acquisition of 100% of the issued and
outstanding securities (the "Transaction") of the private, arms-length
company Diamond Game Enterprises ("Diamond Game"), a designer and
manufacturer of gaming related products for the global casino gaming
and lottery industries. The purchase price was US$25 million, subject
to customary post-closing purchase price adjustments, to acquire 100%
of the equity of Diamond Game and retire its debt. Amaya paid US$18
million on closing of the Transaction from cash on hand with a US$7
million holdback for certain contingent liabilities and other items.
Diamond Game recorded revenues and adjusted EBITDA1 of approximately US$17.8 million and US$3.9 million respectively in
2012. Its revenues and adjusted EBITDA were approximately US$14.0 and
$2.8 million in 2011. The majority of the company's revenues are
recurring and are primarily generated from fixed fee or revenue sharing
arrangements that it has in place for its gaming machines.
"We're pleased to have completed the purchase of Diamond Game, an
innovator in lottery technology with multiple patents, and excited to
have the company's staff become part of Amaya's global team," said
David Baazov, CEO of Amaya. "Placements of Diamond Game's latest
lottery product, the LT-3, have grown substantially over the past year
and we foresee that growth continuing, including in new jurisdictions.
We anticipate integrating games from Amaya's extensive library of
titles into Diamond Game's lottery technology. Additionally, we plan to
leverage our network of relationships to provide new revenue
opportunities for Diamond Game while leveraging Diamond Game's U.S.
lottery relationships to potentially expand deployment of Amaya's
gaming solutions. We anticipate this acquisition will be immediately
accretive to adjusted EBITDA."
Diamond Game has approximately 2,000 machines in 100 locations across 10
jurisdictions. The Company offers over 60 game titles. It holds
licences/approvals in approximately 10 states/provinces/territories and
more than 20 U.S. Native American jurisdictions.
Diamond Game has two primary business units: its Casino Products
division develops products for the VLT, Class II bingo, Class III
commercial casino and racetrack markets; its Lottery Products division
creates innovative products for the public gaming and charity markets,
most notably its LT-3 instant ticket vending machine (ITVM), which
dispenses pull tab/break open or scratch tickets while simultaneously
displaying the results of each ticket on a touchscreen video monitor in
an entertaining fashion.
Diamond Game's industry-leading development of ITVMs with video display
has resulted in the recognition of numerous product patents. The LT‐3
is Diamond Game's most recent iteration of its patented functionality
and advanced array of features. The LT-3 is designed for 'stay and
play' use, thereby creating longer play sessions and higher sales
volumes and enabling lotteries to expand their existing retailer base
into less traditional venues where traditional slot machines may not be
permitted, such as bingo halls, social clubs, veterans offices, bars
and taverns. The LT-3 can be customized to serve varying market needs,
offering different cabinet types, display types, ticket types and other
additional features. Diamond Game currently has LT-3 machines placed in
veterans clubs and bingo halls in Anne Arundel County, Maryland, bingo
halls in Ontario, Canada, fraternal and veteran's clubs across
Missouri, and bingo and fraternal halls in New Mexico.
Amaya provides a full suite of gaming products and services including
casino, poker, sportsbook, platform, lotteries and slot machines. Some
of the world's largest gaming operators and casinos are powered by
Amaya's online, mobile, and land-based products. Amaya is present in
all major gaming markets in the world with offices in North America,
Latin America and Europe. Since the spring of 2012, Amaya acquired
Cryptologic, a pioneer within online casino, Ongame, a leader within
online poker, and Cadillac Jack, a successful slot machine
manufacturer. For more information please visit www.amayagaming.com.
About Diamond Game
Established in 1994, Diamond Game designs, manufactures and services
games and gaming systems for the public gaming, Native American, and
charity markets. Diamond Game's early success was as an innovative
leader in the Class II Native American casino market. Since 2004,
Diamond Game has expanded into public gaming, commercial casino, race
track and bingo markets. Over the years, Diamond Game has developed a
reputation for being a provider of high quality gaming and lottery
products and systems. Diamond Game maintains its corporate headquarters
in Los Angeles, California and service facilities in Oklahoma City, OK,
Hamilton, ON, and Jefferson City, MO. More information may be found at www.diamondgame.com.
Disclaimer in regards to Forward-looking Statements
Certain statements included herein, including those that express
management's expectations or estimates of our future performance
constitute "forward-looking statements" within the meaning of
applicable securities laws. Forward-looking statements are necessarily
based upon a number of estimates and assumptions that, while considered
reasonable by management at this time, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Investors are cautioned not to put undue reliance on
forward looking statements. Except as required by law, the Corporation
does not intend, and undertakes no obligation, to update any
forward-looking statements to reflect, in particular, new information
or future events.
1 Adjusted EBITDA is a non-IFRS measure. Adjusted EBITDA as defined by
the Corporation means earnings before interest, income taxes,
depreciation and amortization, and non-recurring costs.
SOURCE: Amaya Gaming Group Inc.
For further information:
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Tel: +1.416.545.1453 ext. 5833