Las Vegas-based slot machine manufacturer AGS agreed Monday to buy a rival gaming equipment company from Canada-based Amaya Gaming Group for $382 million.
AGS, which is owned by private equity firm Apollo Global Management, will pay $370 million in cash plus a promissory note of $12 million for Cadillac Jack, a slot machine maker headquartered in Duluth, Ga., that provides games to the Indian casino market.
Amaya, which owns PokerStars, announced last year it was seeking to sell Cadillac Jack, which has an installed base of 11,000 slot machines primarily in Alabama and Wisconsin. Amaya has owned Cadillac Jack for two years.
The transaction is expected to close later this year.
Eilers Research founder Todd Eilers said Apollo, one of the private equity firms that owns Caesars Entertainment Corp., “has been very active in the Gaming Equipment sector over the past two years making several acquisitions and management hires.”
Apollo acquired AGS when it was known as American Gaming Systems for $220 million in December 2013.
“The acquisition of Cadillac Jack firmly establishes AGS as a major player in the gaming equipment sector,” Eilers said.
AGS CEO David Lopez said the deal helps in “elevating” the company’s position in the tribal gaming market.
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