Australian gaming machine developer, Ainsworth Game Technology Limited, has announced the signing of a deal that is to see its American subsidiary spend up to $26 million in order to purchase local content specialist MTD Gaming Incorporated.
The Sydney-listed innovator used an official Monday filing (pdf) to detail that the agreement will involve its Ainsworth Game Technology Incorporated subordinate shelling out an initial $13 million so as to acquire the privately-owned developer. The firm declared that the arrangement also includes ‘deferred consideration’ that could be worth up to an additional $13 million and ‘payable on the successful delivery of financial targets and contract renewals.’
Ainsworth Game Technology Limited described Montana-based MTD Gaming Incorporated as ‘a proven developer and supplier of premium performing and unique poker, keno and video reel content for use in multi-game and video lottery terminals’. It stated that these advances are ‘highly complementary’ to its own suite of products and are currently installed at multiple locations across the American states of Montana, Louisiana and South Dakota.
The Australian firm proclaimed that the acquisition is to be funded from ‘existing debt facilities and cash reserves’ and will eventually involve products from MTD Gaming Incorporated being rolled out to ‘specific gaming venues’ in New Mexico, California, Arizona and Nevada, which are markets it revealed have a combined size of approximately 42,000 units.
Lawrence Levy, Chief Executive Officer for Ainsworth, announced that his firm’s purchase of MTD Gaming Incorporated ‘marks another positive step’ in transitioning it towards ‘growth and improved profitability.’
Read a statement from Levy…
“The unique poker and keno games from MTD Gaming Incorporated are a great fit with our existing Class II and Class III offerings in the United States and follows the global launch of our new A-Star cabinet hardware in February. We expect to drive incremental revenues by offering these proven and highly successful games to customers in our established markets where we operate including California and Nevada.”