Operator News
Canada – Amaya proposes US$25m Diamond bid
By Phil - 14 June 2013
Amaya Gaming has entered into a definitive purchase agreement to buy Diamond Game Enterprises, a designer and manufacturer of gaming related products for the global casino gaming and lottery industries.
Amaya is expected to pay US$25m for Diamond, who has approximately 1,800 machines in over 40 locations across seven jurisdictions.
Diamond Game has two primary business units. Its Lottery Products division creates innovative products for the public gaming and charity markets, most notably its patented LT-3 instant ticket vending machine (ITVM), which dispenses pull tab/break open or scratch tickets while simultaneously displaying the results of each ticket on a touchscreen video monitor in an entertaining fashion. Diamond Game has two existing lottery contracts with machines deployed in Maryland and Ontario. Its Casino Products division develops products for the VLT, Class II bingo, Class III commercial casino and racetrack markets.
The deal will see Amaya integrate its extensive games into Diamond Game’s Lottery Technology as well as leveraging both companies’ network of relationships to provide new revenue opportunities for both.
Jim Breslo, President and Chief Executive Officer of Diamond Game, said: “Diamond Game’s sale to Amaya exemplifies the hard work and dedication of our management team and employees over the past 19 years, who have established Diamond Game as an innovative supplier to the gaming industry. The Transaction unlocks value for both companies by pairing our patented technology, innovative products and key contracts in the Lottery segment with a well-capitalized entity in Amaya, which possesses a solid foundation of expertise throughout its organization as well as key relationships throughout the industry. The Transaction marks a significant milestone for us, and a value-maximizing opportunity for Diamond Game’s shareholders which could not be overlooked by our Board of Directors.”
David Baazov, CEO of Amaya Gaming Group, added: “Diamond Game’s lottery technology will increase our lottery footprint in North America while anticipated to be accretive to adjusted EBITDA. We see upside for its latest lottery product, the LT-3, which has already been placed in Maryland and Ontario and which Diamond Game expects to be placed in new jurisdictions in the near future. Our extensive game library can be integrated with their lottery technology.”
