The Amaya Gaming Group has announced today that it has entered into an arm’s length definitive agreement to acquire Cadillac Jack, in a merger transaction.
Cadillac Jack is a leading supplier of products and technologies for the global gaming market with gaming machine placements in more than 200 venues in the United States and Mexico.
Amaya will pay approximately US$167.0 million to acquire 100% of the equity of Cadillac Jack and to retire its debt.
The transaction will be funded through three separate cash payments.
The first payment will be made upon closing of the Acquisition, and will total approximately US$147.0 million.
Amaya will make two additional payments of US$10.0 million each, on the first and second anniversaries of the closing of the Acquisition.
Amaya will finance the payment of the acquisition consideration through a combination of cash-on-hand and a new US$70.0 million to US$100.0 million non-convertible senior secured term loan.
“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,” said David Baazov, Chief Executive Officer of Amaya.
Source: gaming-awards.com
