Scientific Games to acquire DEQ Systems

Scientific Games Corporation and DEQ Systems Corp. have entered into a definitive agreement under which Scientific Games will acquire all of DEQ's issued and outstanding common shares for a cash payment of CAD$0.38 per share.

2016-08-31

United States

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Scientific Games Corporation and DEQ Systems Corp. have entered into a definitive agreement under which Scientific Games will acquire all of DEQ's issued and outstanding common shares for a cash payment of CAD$0.38 per share.

Acquisition strengthens Scientific Games' table products offering, adding to the Company's "one-stop-shop" for casino operators
Adds more proprietary table games and table progressive systems to Scientific Games' rich table solutions library
DEQ's intellectual property licensing drives high margin long-term recurring revenue
Transaction expected to be accretive to earnings and operating cash flow to Scientific Games in 2017

The transaction is expected to close in the fourth quarter of 2016 or the first quarter of 2017, subject to approval by DEQ's shareholders, receipt of gaming approvals in certain jurisdictions, and other customary closing conditions. DEQ generated revenue of CAD$9.5 million with gross profit of CAD$8.1 million on a trailing 12-month basis for the period ended May 31, 2016.

Scientific Games Senior Vice President - Table & Utility Products Roger Snow said, "The DEQ team has grown a fantastic business focused on providing revenue-generating and entertaining solutions for casino operators around the world. Their 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' extensive end-to-end casino portfolio of gaming machines, casino systems, table products, and interactive solutions. We're especially excited about DEQ's EZ Baccarat®, the world's leading baccarat brand with nearly 800 table games in 150 casinos worldwide."

Scientific Games, already a leader through its successful and proven Shuffle Master brand, now adds depth and breadth to its portfolio with the acquisition of DEQ Systems' table games and table game progressives, including its suite of table progressives which provide a recurring revenue stream.

DEQ Systems President and Chief Executive Officer Joseph Bertolone said, "We believe that this is a very good transaction for our company. We look forward to working closely with the Scientific Games 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 for all that we have achieved."