AG&E Holdings, a leading parts distributor to the casino and gaming markets, is buying Advanced Gaming Associates by virtue of a merger of AGA with and into a wholly-owned subsidiary of AGE.
AGA is a privately held company, which generated approximately $6.7m in revenue during the year ended December 31, 2015, primarily attributable to its technical service contracts supporting slot machine gaming operations throughout North America and internationally. The combined companies expect to generate $17m in revenue in their first year of operation.
Michael Levin, Chairman of the Special Committee of the Board, said: “We believe that the merger of these two established companies will form the foundation of the leading parts and services provider for the casino and gaming market in the United States, and even globally.”
“Combining resources with AGE will provide our customers with unparalleled service and product offerings,” stated Anthony Tomasello, the founder and sole owner of AGA. “Our focus over the past 18 months has been to secure proprietary lines of distribution, including i-depsys, Nanoptix and SurgeX. We are presently in negotiations with several other high-profile manufacturers whose products will mesh nicely with the products that the two companies presently represent.”
The merged companies will operate in three lines of business: Parts Distribution, Services (including technical, maintenance, installation, and professional services), and Products. The Products division will include i-depsys note counter systems, SurgeX power protection technology, and Nanoptix printers, along with MEI bill acceptors.
Mr. Tomasello to serve as Interim Chief Executive Officer of AGE pursuant to the terms and conditions of an employment agreement with AGE. AGE plans to initiate a search for a permanent Chief Executive Officer.
After closing, AGE expects the Board to consist of five members.
The parties expect that AGE will to continue to be listed on the NYSE Market exchange under the ticker symbol of “WGA” and will maintain offices in Las Vegas, Nevada, Illinois, Hammonton, New Jersey and Miami, Florida. AGE will move its executive offices to Hammonton, NJ and open a service center in the Chicago area to service the Midwest.