Unique lottery technology expected to increase Amaya's lottery footprint
in North America
MONTREAL, June 12, 2013 /CNW/ - Amaya Gaming Group Inc. ("Amaya" or the "Corporation") (TSXV: AYA), an entertainment solutions
provider for the regulated gaming industry, announced today that it has
entered into a definitive purchase agreement to acquire 100% of the
issued and outstanding securities (the "Transaction") of a 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.
Upon closing of the Transaction, Amaya is expected to pay US$25 million,
subject to customary purchase price adjustments, to acquire 100% of the
equity of Diamond Game and to retire its debt. Amaya will finance the
consideration to be paid for the Transaction 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.
"Diamond Game's sale to Amaya exemplifies the hard work and dedication
of our management team and employees over the past 19 years, who have
established Diamond Game as an innovative supplier to the gaming
industry," commented Jim Breslo, President and Chief Executive Officer
of Diamond Game. "The Transaction unlocks value for both companies by
pairing our patented technology, innovative products and key contracts
in the Lottery segment with a well-capitalized entity in Amaya, which
possesses a solid foundation of expertise throughout its organization
as well as key relationships throughout the industry. The Transaction
marks a significant milestone for us, and a value-maximizing
opportunity for Diamond Game's shareholders which could not be
overlooked by our Board of Directors."
"Diamond Game's lottery technology will increase our lottery footprint
in North America while anticipated to be accretive to adjusted EBITDA,"
said David Baazov, CEO of Amaya Gaming Group Inc. "We see upside for
its latest lottery product, the LT-3, which has already been placed in
Maryland and Ontario and which Diamond Game expects to be placed in new
jurisdictions in the near future. Our extensive game library can be
integrated with their lottery technology."
Concurrently with the execution of the definitive purchase agreement,
Amaya has agreed to make available to Diamond Game credit facilities of
up to 2.5 million dollars to support equipment acquisition to fulfill
existing contracts by Diamond Game until closing of the Transaction.
Expected Benefits of the Transaction
Anticipated by management to be immediately accretive to adjusted EBITDA
The Corporation has identified a number of potential synergies
Integrating Amaya's extensive games into Diamond Game's Lottery
Leveraging Amaya's network of relationships to provide new revenue
opportunities for Diamond Game
Leveraging Diamond Game's U.S. Lottery relationships for the expanded
deployment of Amaya's suite of products
Overview of Diamond Game
Established in 1994 with headquarters in Los Angeles, California,
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.
Diamond Game has approximately 1,800 machines in over 40 locations
across seven jurisdictions.
Diamond Game has two primary business units:
Diamond Game's Lottery Products division creates innovative products for
the public gaming and charity markets, most notably its patented 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 has two existing lottery contracts with machines deployed
in Maryland and Ontario.
Diamond Game's Casino Products division develops products for the VLT,
Class II bingo, Class III commercial casino and racetrack markets.
Diamond Game's industry-leading development of ITVMs with video display
has resulted in the recognition of numerous product patents.
ABOUT AMAYA GAMING GROUP INC.
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 game systems for various North American gaming 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. In addition to its headquarters in the metro Los Angeles area
(Chatsworth, CA), Diamond Game operates two sales, assembly and service
centers in Oklahoma City, OK and Hamilton, ON. 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.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release."
SOURCE: Amaya Gaming Group Inc.
For further information:
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