Giant gaming technology provider Scientific Games Corporation has entered into a definitive agreement that could see it purchase Canadian rival DEQ Systems Corporation for around $20.7 million.
Las Vegas-based Scientific Games Corporation revealed that it intends to acquire all of the issued and outstanding common shares in DEQ Systems Corporation for approximately $0.29 each with the deal subject to approvals from two-thirds of its target’s shareholders as well as certain gaming regulators alongside “other customary closing conditions”.
“The DEQ Systems Corporation team has grown a fantastic business focused on providing revenue-generating and entertaining solutions for casino operators around the world,” said Roger Snow, Table And Utility Products Senior Vice-President for Scientific Games Corporation. “Its established and high-performing library of table games, table progressives and random bonusing systems will enhance our offerings, add to our recurring revenue base and provide even more ways for casinos to engage players through Scientific Games Corporations’ extensive end-to-end casino portfolio of gaming machines, casino systems, table products and interactive solutions. We’re especially excited about DEQ Systems Corporation’s EZ Baccarat,?the world’s leading baccarat brand with nearly 800 table games in 150 casinos worldwide.”
Scientific Games Corporation declared that DEQ Systems Corporation, which was fully?based in the Quebec City suburb of Levis before partially relocating to Las Vegas in May, generated revenues of $7.31 million alongside a gross profit of $6.2 million for the year to the end of May. It explained that the transaction is expected to close before the end of the first quarter of 2017 and will see it add “depth and breadth” to its portfolio of table games and table game progressive systems and harness a stream of “high-margin long-term recurring revenues”.
“We believe that this is a very good transaction for our company,” said Joseph Bertolone, President and Chief Executive Officer for DEQ Systems Corporation. “We look forward to working closely with the Scientific Games Corporation team to ensure a smooth transition and continued innovation for gaming operators and their players around the world. I am incredibly proud of the entire team at DEQ Systems Corporation for all that we have achieved.”