Integrity Gaming Corp. is among the leading forces in the region when it comes to providing gaming venues with slot machines and other electronic devices diversifying their offerings. In a recently issued statement, the company announced it has inked a deal with the Nevada-listed AGS, LLC amounting to some $48 million, which is going to see the US games developer acquire the slot route operator.
The acquisition deal was inked only recently, but it has been a long-anticipated one for the North American gaming field, as it has the potential to significantly enrich the performance of businesses working with the Vancouver-based provider. Formerly known as Poydras Gaming Finance Corp. the slot provider reached an arrangement with the Las Vegas-based AGS with the potential to bring more to the field.
Acquisition Set to Deepen Roots in Two States
According to the information announced by the two parties involved in the deal, the Nevada-based company is going to acquire all issued and outstanding common shares of Integrity Gaming. This is going to happen at a price reaching CA$0.46 per a single share of the company. What should be taken into account is that the amount of the deal is going to cover the outstanding debt accumulated by Vancouver-listed slot machines provider as well.
The debt itself amounts to some $36 million and as it turned out it is going to be covered by the arrangement. Soon after the announcement it became known that the AGS Senior Vice-President of Slot Products Andrew Burke is more than content to be further solidifying AGS’s foothold in states to the likes of Oklahoma and Texas. This is where Integrity Gaming operates at the moment, providing Class II and Class III locations with its various slot offerings.
About 30 tribal gaming venues sprinkled across the two states currently provide their patrons with premium gaming thanks to the partnership with Integrity Gaming. More than 2,700 devices are currently in operation, meaning that the Las Vegas-based provider is about the expand significantly its portfolio. Some of them have been provided by AGS. Through exploring the markets and boosting the local tribal gaming field, the company seeks to bring more to players.
Next Year Could See More Development and Expansion
Integrity Gaming recently issued its financial results for the third quarter of 2018 fiscal year which proved to be quite positive. The provider saw a 1.0 percent surge in Adjusted EBITDA, reaching $2.28 million. This percentage is indicated when compared to the $2.39 million generated in the second quarter of its fiscal year.
Net loss for the company also saw a decrease, as it reached $1.27 million in Q3 2018. In this sense, this was a significant improvement, as the net loss in the third quarter of 2017 amounted to $2.02 million. It should also be pointed out that once the second quarter of this fiscal year was over, the slot machines provider inked a new placement arrangement.
With its help, as many as 250 devices were introduced. The year 2019 is going to be dedicated to elevating the existing gaming operation throughout the two states, as AGS seeks to expand its portfolio with other potential acquisitions.
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