Amaya Gaming, one of the leading providers of technology based gaming solutions to the regulating gaming industry, has announced that it has entered into an “Arm’s length definitive agreement” for the acquisition of Cadillac Jack, Inc in a merger transaction that was entered into on September 25, 2012.
Cadillac Jack has its headquarters in the U.S. Georgia State and serves as a developer and supplier of video reel slots, Latin style bingo games and wide area and multi-level progressives. Cadillac Jack also develops content and technologies that are specific to the US and Mexican gaming markets.
It is reported that Amaya will pay an amount of approximately US$ 167.0 million in order to acquire 100% of Cadillac Jack’s equity and to retire its debt which will be funded through three separate cash payment. Amaya will make its first payment of approximately US$ 147.0 million upon closing of the Acquisition with two additional payments of US$ 10.0 million each on the first and second anniversaries of the closing of the Acquisition.
David Baazov, chief executive officer of Amaya, said that the acquisition of Cadallic Jack is a great event for Amaya and that they expect that the combined companies will leverage their distribution for game content in the key areas of online, mobile and land based casinos. Baazov added that the Acquisition creates immediate scale for Amaya’s operations and greatly enhances growth opportunities for both companies.
The closing date of the Acquisition, which is subject to a number of conditions that includes TSX Venture Exchange approvals is expected during the fourth quarter of 2012.
