Scientific Games Corporation and DEQ Systems Corp. on Wednesday announced that they have entered into a definitive agreement under which Scientific Games will acquire all of DEQ's issued and outstanding common shares for a cash payment of CAD$0.38 ($0.29) per share.
The transaction is expected to close in the fourth quarter of 2016 or the first quarter of 2017, subject to approval by DEQ's shareholders, receipt of gaming approvals in certain jurisdictions, and other customary closing conditions.
DEQ generated revenue of CAD$9.5 million with gross profit of CAD$8.1 million on a trailing 12-month basis for the period ended May 31, 2016.
Scientific Games senior vice president - table & utility products Roger Snow said, "The DEQ team has grown a fantastic business focused on providing revenue-generating and entertaining solutions for casino operators around the world. Their established and high-performing library of table games, table progressives, and random bonusing systems will enhance our offerings, add to our recurring revenue base, and provide even more ways for casinos to engage players through Scientific Games' extensive end-to-end casino portfolio of gaming machines, casino systems, table products, and interactive solutions. We're especially excited about DEQ's EZ Baccarat, the world's leading baccarat brand with nearly 800 table games in 150 casinos worldwide."
DEQ Systems president and chief executive officer Joseph Bertolone said, "We believe that this is a very good transaction for our company. We look forward to working closely with the Scientific Games team to ensure a smooth transition and continued innovation for gaming operators and their players around the world. I am incredibly proud of the entire team at DEQ for all that we have achieved."
The acquisition of the shares of DEQ will be completed by a court approved plan of arrangement under the Canada Business Corporations Act and will require the approval of 66 2/3 percent of the votes cast by DEQ shareholders at a special meeting of shareholders of DEQ expected to be held in late October or early November.
All of the directors and executive officers of DEQ have entered into support agreements pursuant to which they have agreed to vote in favor of the arrangement.
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