Nevada-based operator, AGS has agreed to purchase regional slot machine operator, called Integrity Gaming. The price they settled on is $49 million.

With this move, AGS has acquired all issued and outstanding common shares in Integrity. The transaction will be completed using cash on the supplier’s balance sheet. This is the excellent bargain for the regional provider because AGS is going to repay Integrity’s debt of $36 million!

What Does AGS Get?

Although the company has agreed to repay a fairly large debt and add $13 million to that amount, they wouldn’t have done so had they not seen the benefits of the agreement.

In fact, AGS is going to get in possession of more than 2,700 slot machines scattered around 33 casinos in Texas and Oklahoma…

…which is expected to generate a massive profit through revenue share agreement with its partners. And speaking of which, a majority of its partners include Native American casinos.

Financial Status

In 2017 fiscal year, Integrity managed to generate $16 million of earnings before interest, tax, amortization and depreciation of $9 million. However, in the new year, the management of the company expects to see the growth of 15%.

“The Integrity team has built a strong business, with an installed base of more than 2,700 Class III and Class II games in Oklahoma and Texas, partnering with some of the largest tribal gaming operators in the United States,” AGS senior vice president of slot products Andrew Burke pointed out.

“AGS’ roots are in Oklahoma, and we are excited to invest further in a market we are so passionate about and where we already have strong sales and customer support networks,” he continued.

“We look forward to working in partnership with the Integrity team to provide Integrity’s customers with an exceptional service and support experience and a continued focus on driving optimal game performance,” finished Mr. Burke.

What Else Did They Say?

Integrity interim chief executive, Robert Miodunski, added: “We strongly believe this is a good transaction for our company and that our customers will benefit from AGS’ deep roots in Oklahoma and its proven ability to successfully manage a large footprint of leased games to drive strong performance for gaming operators.”

He beamed that the company looked forward to working together with AGS, saying that a transition would be smooth. Mr. Miodunski concluded by praising the Integrity team and everything they have achieved in over 20 years of existence.

Slowly but Surely

AGS keeps gaining ground and they have made some bold moves in 2018. One of the highlights includes the signing of a distribution deal with Relax Gaming. The agreement was meant to help both companies extend their reach and get to as many potential users as possible.

Also, earlier in the year, they have a significantly smaller acquisition deal. Namely, for $5 million, AGS purchased Gameiom Technologies, a UK-based company that specializes in online gaming services and products. Although the purchase wasn’t as high as the one with Integrity…

…it was a perfect fit for the company’s tactics to pursue a pure content aggregation.

Source:

“AGS agrees $49m acquisition of Integrity Gaming”, totallygaming.com, December 17, 2018.

https://www.wds-media.com/wp-content/uploads/2018/12/ags_made_a_partnership_with_a_promising_operator_the_rank_group.pnghttps://www.wds-media.com/wp-content/uploads/2018/12/ags_made_a_partnership_with_a_promising_operator_the_rank_group.pngadminCasino
Nevada-based operator, AGS has agreed to purchase regional slot machine operator, called Integrity Gaming. The price they settled on is $49 million. With this move, AGS has acquired all issued and outstanding common shares in Integrity. The transaction will be completed using cash on the supplier’s balance sheet. This is...