Gaming company Amaya Gaming has announced that it is to sell its Cadillac Jack B2B land-based gaming solutions business to casino gaming products designer AGS for CAN$476 million (€346.3 million/$375.2 million).
The deal will comprise a cash consideration of $461 million, subject to adjustment, and a CAN$15 million payment-in-kind notice bearing interest at 5% per annum and due on the eighth anniversary of the closing date.
Amaya said that net proceeds from the deal would mainly be used for de-leveraging, including the repayment of Cadillac Jack’s existing senior secured term loan and mezzanine debt.
The sale comes after Amaya in January revealed it was hoping to part ways with Cadillac Jack after initially announcing in October last year that it was seeking alternatives for the asset.
“Cadillac Jack has grown its business significantly in new geographies and new markets under Amaya, and we are very proud of the efforts of its management and its employees,” Amaya chief executive officer David Baazov said.
“We are confident that combining Cadillac Jack with AGS presents a strong opportunity to expedite the company’s growth strategy, while at the same time crystallising on the strong value created in the business to benefit Amaya’s shareholders.”
Amaya expects the transaction to be completed by the end of this year, subject to regulatory and antitrust approvals, as well as other customary closing conditions.
source : www.igamingbusiness.com
