Copyright : luzitanija / 123RF Stock Photo

Las Vegas headquartered AGS has announced a definitive agreement to acquire regional slot route operator Integrity Gaming Corp, for a total value of $49m.

Including repaying $36m of outstanding debt, the cash transaction is expected to be closed in the first half of next year, and is subject to approval by Integrity shareholders.

Robert Miodunski, Integrity interim chief executive officer, commented: “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.”

For the 2017 fiscal year Integrity generated revenues of $16m and pre-synergy EBITDA in the region of $9m, with AGS expecting EBITDA growth at “approximately 15 per cent on an annualised and non-GAAP basis, beginning in fiscal 2019”.

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 further gaming products and supplies.

Andrew Burke, AGS senior vice president of slot products, explained: “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.”