Scientific Games is buying table progressive specialist DEQ Systems, including all of DEQ’s issued and outstanding common shares for a cash payment of CAD$0.38 per share.
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. DEQ generated revenue of CAD$9.5m with gross profit of CAD$8.1m on a trailing 12-month basis for the period ended May 31, 2016.
Scientific Games Senior Vice President of 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.”