Printer Friendly

GTECH SIGNS AGREEMENT TO PURCHASE SHARES OF BRAZILIAN COMPANY

 WEST GREENWICH, R.I. March 26 /PRNewswire/ -- GTECH (NYSE: GTK) announced today that it has signed definitive agreements with Brazilian nationals Mr. and Mrs. Simao Brayer, RACIMEC Informatica Brasileira S.A. (RACIMEC), and RACIPAR Empreendimentos Participacoes Ltda., for the purchase by GTECH of voting common and non-voting preferred shares of RACIMEC, A Brazilian company engaged in the lottery and the computer systems businesses. The maximum purchase price to be paid by GTECH, subject to adjustment, is U.S. $13.7 million. Brayer, who is presently the majority shareholder, will retain voting control of RACIMEC after the transaction. Included in the agreements are provisions for Brayer to provide GTECH with consulting and related services.
 Prior to GTECH's purchase of the shares, RACIMEC will spin-off its computer systems business to a new company and will continue to own and operate its lottery business, which consists of the marketing and servicing of off-line lottery systems in South America, primarily in Brazil. RACIMEC's lottery business generates base annual revenues of approximately U.S. $21 million, primarily from the maintenance of off-line terminals.
 The Brazilian national lottery, the CAIXA Economica Federal, has been the Company's largest customer for more than 22 years, having approximately 23,000 RACIMEC-installed and operated terminals. The CAIXA offers a variety of off-line games, and had annual lottery revenues estimated at U.S. $600 million for the year ended Dec. 31, 1992.
 Commenting on the agreement, GTECH Chairman, Victor Markowicz, said, "For years, GTECH has supplied systems and services to Latin American lotteries and we continue to perceive this region as a major growth area. We believe that this agreement with RACIMEC will further strengthen GTECH's position in this developing lottery market."
 The closing of the acquisition is subject to certain conditions, including the obtaining of certain regulatory approvals.
 GTECH Corporation designs, produces, implements, operates and services computerized networks for government-sponsored or licensed lotteries on five continents. In addition, GTECH Corporation provides a wide variety of instant ticket support services. GTECH currently supplies and/or operates lottery systems for 25 U.S. customers and 34 jurisdictions outside of the United States. GTECH Corporation employs approximately 1,000 people in Rhode Island and more than 3,100 worldwide.
 -0- 3/26/93
 /CONTACT: Craig Watson of GTECH Corporation, 401-392-1000/
 (GTK)


CO: GTECH Corporation ST: Massachusetts IN: SU:

TM -- NE004 -- 9958 03/26/93 09:16 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 26, 1993
Words:394
Previous Article:SCE'S CUSTOMER TECHNOLOGY APPLICATION CENTER WINS CALIFORNIA COUNCIL ON PARTNERSHIPS' RED TAPE AWARD
Next Article:SBA NAMES REGIONAL WOMEN IN BUSINESS ADVOCATE OF THE YEAR
Topics:


Related Articles
C O R R E C T I O N -- GTECH HOLDINGS CORP ANNOUNCES OFFERING FOR SALE OF COMMON STOCK
GTECH ANNOUNCES NEW AGREEMENT AND CONTRACT IN SOUTH AMERICA
GTECH ANNOUNCES BUSINESS IN BRAZIL AND ASIA COMPANY COMPLETES PURCHASE OF RACIMEC SHARES AND FINALIZES AGREEMENTS FOR MALAYSIA AND CHINA
GTECH HOLDINGS CORPORATION PRICES SECONDARY OFFERING
GTECH ANNOUNCES NEW CONTRACTS AND CONTRACT EXTENSION
Sodak, IGT and Dreamport Announce Video Gaming Joint Venture in Brazil
GTECH Enters Into Agreement to Acquire VideoSite, Inc.
GTECH Announces Second-Quarter Earnings.
GTECH Signs On-Line Lottery Contract With New Customer in Australia.
GTECH Announces Record Earnings Per Share.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters