t expects to complete the acquisition of such interest on that date. Gtech will pay euro 20 million for the 50 percent equity stake.
The firm also announced that it has signed an agreement to acquire the remaining 50 percent of Atronic for euro 32 million. The transaction is subject to routine regulatory reviews and approval prior to closing which is anticipated to be during 2008.
The company expects to fund the cash portion of the transaction from existing cash balances. The overall transaction is expected to have a total value of approximately euro 172 million, which includes approximately euro 120 million of debt.
"With the acquisition of Atronic, Gtech will become one of the top five suppliers to the worldwide machine gaming market," said Lottomatica Chairman and CEO Lorenzo Pellicioli.
"The addition of Atronic to Gtech's Gaming Solutions division, which includes Spielo, a leader in the government- sponsored gaming market, will create an organization of considerable scale that will have the content, products, and services to successfully compete in the commercial gaming, as well as, the government-sponsored market sectors. From Lottomatica's perspective, the decision to acquire all of Atronic is a clear indication of our commitment to support and invest in Gtech's strategic- growth plan."
"Atronic's seasoned management team will add international experience and depth to Gtech's core gaming expertise," said Gauselmann Group Co-Chairman and CEO Michael Gauselmann. "Combining the Gtech global footprint with Atronic's worldwide distribution capabilities, local gaming licenses, linked and wide- area progressive solutions, and successful licensed brands, allows the combined entities to compete more effectively in the venue and distributed markets."
Gtech President and CEO Jaymin B. Patel added, "We have completed a detailed integration plan for implementation after the close. Once we get underway, we expect the integration to be completed quickly. I have asked Atronic CEO Gerhard Burda to lead the integration effort. He will continue as Atronic CEO and has accepted the position of Senior Vice President for Gtech's Gaming Solutions. He will form a leadership team that will include Victor Duarte, Spielo COO, who has very capably led the Gtech Gaming Solutions division during this transition period."
Atronic is a market leader in Europe, Russia, and Latin America, with a solid presence in the U.S. and growing footprints in Africa and Asia. In calendar 2006, Atronic had total revenues in excess of euro 152 million.
The company, which will continue to maintain its established worldwide brand identity, holds a total of 230 worldwide gaming licenses worldwide, including 27 US states and 165 tribes. Atronic, together with Gtech and Spielo, are licensed to sell products in over 300 gaming markets globally including Nevada.