US – AGS buys Integrity Gaming to get a strong foothold in Oklahoma and TexasBy Phil - 18 December 2018
AGS has bought Integrity Gaming, a company that has already worked with many of the tribal gaming operators in in Oklahoma and Texas, for US$49m
Integrity generated revenue of USD$16m and pre-synergy EBITDA of approximately USD$9m in 2017. As a result of revenue optimization and other efficiencies, the Company expects that adjusted EBITDA will grow at approximately 15 percent on an annualised and non-GAAP basis, beginning in fiscal 2019.
AGS Senior Vice President of Slot Products Andrew Burke said: “The Integrity team has built a strong business, with an installed base of more than 2,700 Class III and Class II games in Oklahoma and Texas, partnering with some of the largest tribal gaming operators in the United States. AGS’ roots are in Oklahoma, and we are excited to invest further in a market we are so passionate about and where we already have strong sales and customer support networks. We look forward to working in partnership with the Integrity team to provide Integrity’s customers with an exceptional service and support experience and a continued focus on driving optimal game performance.”
Integrity Interim Chief Executive Officer Robert Miodunski said: “We strongly believe this is a good transaction for our company and that our customers will benefit from AGS’ deep roots in Oklahoma and its proven ability to successfully manage a large footprint of leased games to drive strong performance for gaming operators. We look forward to working closely with the AGS team to ensure a smooth transition and continuity of service and support for our customers. I am proud of the Integrity team and the success we have achieved over our more than 20 years.”
Integrity owns slot machines manufactured by various slot suppliers, including AGS, in approximately 30 tribal casinos in Oklahoma and Texas and also offers direct sales of other gaming products and supplies.