Acquisition of Diamond Game Enterprises by Amaya Gaming Group
Gaming industry entertainment solutions provider Amaya Gaming Group Incorporated is continuing its growth through acquisition strategy after entering into a definitive agreement to purchase North American games and systems designer, manufacturer and services firm Diamond Game Enterprises.
Montreal-based Amaya Gaming Group purchased Ongame Network Limited from bwin.party digital entertainment in October for approximately $19.42 million while November saw it pay $167 million in order to take control of electronic machine and technology supplier Cadillac Jack Incorporated.
In April, Amaya Gaming Group parted with approximately $29 million for CryptoLogic Limited while the latest deal will see it fork out $25 million for 100 percent of the equity in Diamond Game Enterprises and retiring the Los Angeles-based company’s debts.
“Diamond Game Enterprises’ lottery technology will increase our lottery footprint in North America while anticipated to be accretive to adjusted earnings before interest, tax, depreciation and amortisation,” said David Baazov, Chief Executive Officer for Amaya Gaming Group.
“We see upside for its latest lottery product, the LT-3, which has already been placed in Maryland and Ontario and which Diamond Game Enterprises expects to be placed in new jurisdictions in the near future. Our extensive game library can be integrated with its lottery technology.”
Amaya Gaming Group declared that it intends to finance the purchase ‘through cash on hand’ with the deal, which is subject to licensing and regulatory approvals, expected to close during the fourth quarter.
“Diamond Game Enterprises’ sale to Amaya Gaming Group exemplifies the hard work and dedication of our management team and employees over the past 19 years, who have established Diamond Game Enterprises as an innovative supplier to the gaming industry,” said Jim Breslo, President and Chief Executive Officer for Diamond Game Enterprises.
“The transaction unlocks value for both companies by pairing our patented technology, innovative products and key contracts in the lottery segment with a well-capitalised entity in Amaya Gaming Group, which possesses a solid foundation of expertise throughout its organisation as well as key relationships throughout the industry.
“The transaction marks a significant milestone for us and a value-maximising opportunity for Diamond Game Enterprises’ shareholders that could not be overlooked by our board of directors.”
In addition to the purchase, Amaya Gaming Group stated that it also intends to make additional credit facilities worth up to $2.5 million available to Diamond Game Enterprises to ‘support equipment acquisition’ and help the firm ‘fulfil existing contracts’.