AGS to acquire Cadillac Jack

"After what can only be categorized as an incredibly transformational year for AGS, the acquisition of Cadillac Jack further demonstrates that we are positioned to take the next step in establishing ourselves as a major player in the gaming industry," said David Lopez, Chief Executive Officer (CEO) of AGS. "In addition to elevating our leadership position in the Class II space, Cadillac Jack accelerates our Class III growth strategy by complementing our product suite and broadening our content library."

Cadillac Jack's success in the North American tribal gaming market is underpinned by a quality library of renowned game titles such as the So Hot family of games.

Fueled by AGS's unwavering commitment to enhance its value proposition for its customers, strategic rationale for the transaction includes:

Allowing AGS to better yield manage its substantial Class II footprint
Diversifying and enhancing AGS’s product portfolio and geographic footprint
Enhancing AGS's development, marketing, sales and service capabilities
Creating broader offerings to support Class III growth
Operational opportunities from product synergies
Building quality through additional scale
Opportunities to leverage Cadillac Jack content and unlock full potential through AGS's distribution channels and growth strategy
Addition of approximately $93 million in annual revenues from Cadillac Jack bolsters AGS's profile as a major player in the supplier space
Addition of a strong recurring revenue stream; 88% of Cadillac Jack's revenues are from lease/participation, reinforced by contracts with tribal gaming operators
Cultural alignment with strong customer service and focus on innovation across both organizations

The transaction is anticipated to be completed in 2015, subject to required regulatory approvals and customary closing conditions.