AGS wraps up $49m acquisition of Integrity Gaming

AGS acquisition of Integrity Gaming : PlayAGS (AGS), a Las Vegas-based provider of electronic gaming machines, table products, and interactive solutions for the gaming industry, has wrapped up its previously announced $49 million acquisition of Integrity Gaming.

Canada-based Integrity Gaming is a regional slot route operator with more than 2,700 gaming machines across 33 plus casinos in the states of Oklahoma and Texas. In fiscal 2017, the company registered revenue of nearly $16 million and pre-synergy EBITDA of about $9 million.

The bulk of the company’s revenue comes from short-and-long-term revenue-share contracts it has with Native American casinos. Integrity Gaming supplies gaming equipment like slot machines and electronic table games, as well as project financing to owners, operators, and managers of casinos and other regulated gaming locations.

AGS acquisition of Integrity Gaming. Image courtesy of patrisyu at FreeDigitalPhotos.net.

AGS acquisition of Integrity Gaming will help the latter to increase its recurring revenue footprint by 2,700 plus games along with yield optimization opportunities.

Integrity Gaming’s installed base of over 2,700 Class III and Class II games in Oklahoma and Texas includes slot machines manufactured by multiple slot suppliers, including AGS, in nearly 30 tribal casinos.

Commenting on AGS acquisition of Integrity Gaming, Andrew Burke – AGS Senior Vice President of Slot Products, said: “We are thrilled to have so quickly closed this deal and are ready to provide Integrity’s customers with exceptional service and support.

“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.”

The deal was signed in December 2018 under which AGS offered to pay a cash payment of CAD$0.46 ($0.35) per share to Integrity Gaming. AGS also agreed to repay $36 million of Integrity Gaming’s outstanding debt.

Following the closing of the deal, the brand, operations, and team of Integrity Gaming will be integrated under AGS, with centralized service and support handled by AGS’ offices in Oklahoma City, Oklahoma.

For more gaming industry news like AGS acquisition of Integrity Gaming, keep following Business-News-Today.com.