odd Eilers of Roth Capital Partners said in a client note that International Game has eyed the casino-management software provider before, but the Las Vegas-based company is more appealing now due to its current stock price, improved balance sheet and recent legal settlement.
Progressive agreed in November to settle litigation with Derek Webb and Prime Table Games. Webb sued Progressive in 2002, arguing the company illegally restrained trade and attempted to monopolize the U.S. proprietary table game market. Progressive was sued under its former name of Mikohn Gaming Corp., according to a Securities and Exchange Commission filing.
The settlement called for Progressive to pay us$ 24.7 million in cash and attorney fees.
Eilers suggested the company could be acquired for us$ 3.50 to us$ 4.50 per share. He reaffirmed a "Buy" rating.