Canadian gambling technology provider Amaya Gaming Group announced the full 100% acquisition of Cadillac Jack, Inc. Canadian gambling news estimate that the deal is worth around $167 million.
The closing date of the acquisition is expected in the fourth quarter of 2012. The deal will involve clearing Georgia head-quartered Cadillac Jack’s debt and will likely to be funded through three separate cash payments.
Amaya plans to grow big, the Canadian firm was rumored to be interested in the acquisition of Bwin’s Ongame Poker Network with plans to conquer the US and Canadian poker rooms.
Cadillac Jack is a developer and publisher of video reel slots. They also specialize in wide area and multi-level progressives and Latin style bingo games. Most of its content is targeted at markets controlled by regulations under Canadian gambling laws, as well as US and Mexican markets.
Last calendar year, Cadillac Jack reported $78.5 million in total revenues with a $17.8 million in net income. For the six months in 2012, Cadillac Jack reported $39.6 million in total revenues with $3.9 million in net income.
Amaya will make the first payment of $147.0 million upon closing of the acquisition deal. Two additional $10.0 million are to be paid on the first and second anniversaries of the acquisition.
David Baazov, chief executive officer of Amaya commented: “The acquisition of Cadillac Jack is a pivotal event for Amaya. We expect that the combined companies will leverage their distribution for game content in the key areas of online, mobile and land based casinos. The Acquisition creates immediate scale for Amaya’s operations and greatly enhances growth opportunities for both companies.”
Baazov added: “I want to thank Gene Chayevsky, who has held leadership roles at Cadillac Jack since 2004 and been its chief executive officer since 2008, for his stewardship in establishing one of our industry’s emerging leaders. The foundation for growth that Gene established at Cadillac Jack made it an ideal complement to Amaya’s business.”
Cadillac Jack’s main man Gene Chayevsky commented: “I’m proud of our team and our accomplishments over the past several years, which established Cadillac Jack as one of Georgia’s and the gaming industry’s leading growth companies.”