Amaya acquires US gaming machine supplier for $167m
Canadian software provider hoping to add Ongame to portfolio in coming weeks following Cadillac Jack acquisition.
Amaya, the gaming technology supplier set to announce its acquisition of bwin.party’s poker network Ongame, has agreed a deal to buy US gaming machine and systems supplier Cadillac Jack for US$167m in a merger transaction.
As part of the agreement, Amaya will assume the Georgia-based manufacturer’s debt, with $147m to be paid once the deal is finalised and the remaining $20m to be paid in two instalments, 12 months and 24 months later. Cadillac Jack has gaming machines in more than 200 locations throughout the US and Mexico.
David Baazov, chief executive of Amaya, said of the Cadillac Jack deal: “The acquisition of Cadillac Jack is a pivotal event for Amaya. We expect that the combined companies will leverage their distribution for game content in the key areas of online, mobile and land based casinos. The acquisition creates immediate scale for Amaya’s operations and greatly enhances growth opportunities for both companies.”
With the deal for Cadillac Jack set to be finalised in Q4, Amaya’s attention is now expected to turn to Swedish poker network Ongame.
The Canadian software supplier has been courting the loss-making poker network for several months and recently entered into an exclusive preferred bidder position with Ongame’s owner bwin.party, with the latter searching for a buyer since the spring of last year when it publicly deemed it a “surplus asset” following the merger of Bwin and PartyGaming.
While the price is as yet undisclosed, it is understood that bwin.party co-CEO Jim Ryan has been holding out for a similar fee to that of previous bidder Shuffle Master that had agreed to acquire the network for 19.5m in March.