Gaming designer PlayAGS announced today that it has successfully completed its acquisition of slot route operator Integrity Gaming Corp. The acquisition increases AGS’ recurring revenue footprint by more than 2,700 games and presents the company with yield optimization opportunities.
“We are thrilled to have so quickly closed this deal and are ready to provide Integrity’s customers with exceptional service and support,” AGS Senior Vice President of Slot Products Andrew Burke said in a statement. “Every Integrity customer is also an AGS customer, so this should be a relatively seamless transition and one that gives us an opportunity to work with operators to ensure they are getting the best performance from their Integrity-placed games.”
Under the terms of the deal, AGS acquired all issued and outstanding common shares of Integrity Gaming Corp. for a cash payment of CAD$0.46 per share, reflecting a total transaction value of USD$49 million, which includes repaying USD$35 million of Integrity’s outstanding debt. The acquisition was funded with cash on the balance sheet.
Integrity’s installed base of more than 2,700 Class III and Class II games in Oklahoma and Texas includes slot machines manufactured by various slot suppliers, including AGS, in approximately 30 tribal casinos.
Integrity’s brand, operations, and team will now be integrated under AGS, with centralized service and support managed from AGS’ Oklahoma City, Oklahoma offices.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Blake, Cassels & Graydon LLP served as legal advisors to AGS.
