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Amaya Gaming buys US fellow firm Cadillac Jack.

M2 EQUITYBITES-November 6, 2012-Amaya Gaming buys US fellow firm Cadillac Jack(C)2012 M2 COMMUNICATIONS

6 November 2012 - Canada's gaming solutions provider Amaya Gaming Group Inc (CVE:AYA) has finalised the acquisition of Cadillac Jack Inc, a US-based provider of products and technologies for the gaming market.

Under the terms of the deal agreed on 25 September, Amaya Gaming is paying USD177m (EUR137.2m) for the Georgia-based firm. The buyer will use a mix of cash on hand and proceeds from a USD110m non-convertible senior secured term loan backed by the target's assets to cover the price. A portion of the sum will go for the repayment of Cadillac Jack's debt, as well as for transaction costs and working capital.

The deal is seen to immediately contribute to Amaya Gaming's revenue and adjusted EBITDA, the buyer noted. The acquisition is also expected to have a positive impact on the buyer's earnings per share.

Cadillac Jack supplies games and systems chiefly in the US and Mexico. Its product portfolio includes server-based and standalone video reel slots, wide area and multi-level progressives, video lottery terminals and slot management systems. The company mainly caters to medium-sized casinos and bingo halls.

The transaction will give Amaya Gaming the opportunity to combine its digital gaming expertise with Cadillac Jack's focus on traditional land-based gaming to improve its capabilities and become a fully-integrated game solutions provider, its CEO David Baazov commented.

The buyer was advised by Greenberg Traurig PA, Heenan Blaikie LLP and Macquarie Capital Markets Canada Ltd. Cadillac Jack used the services of Wilmer Cutler Pickering Hale, Dorr LLP and Innovation Capital.

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Publication:M2 EquityBites (EQB)
Date:Nov 6, 2012
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