American Gaming Systems (AGS), the Las Vegas-based supplier of Class II and Class III slot machines as well as live table games, has finalized the acquisition of Cadillac Jack, a leading provider of Class II gaming machines for the North American tribal gaming market, with key regions of operation including Alabama, Mexico and Wisconsin.
As previously announced in March, the deal is valued at $370 million in cash plus a promissory note of $12 million.
“I am excited to start a new chapter in the AGS growth story,” said David Lopez, CEO for AGS. “Adding Cadillac Jack to the AGS family creates a bigger, broader, and more powerful gaming solutions provider. This is a significant milestone for our company and—in combination with our recent entry into table games and the acquisition of Colossal—further solidifies AGS as a serious player in the gaming space. Each organization’s respective strengths create excellent growth opportunities in the Class II and Class III markets, as well as an increased geographic footprint.”
“We are committed to our customers, employees, and stakeholders to complete this integration as efficiently as possible,” added Lopez. “Our two businesses are highly complementary and very familiar with one another. The wealth of experience possessed by the combined team, along with the financial backing from our sponsors at Apollo, will allow us to effectively grow and improve our business.”
AGS was acquired in December 2013 by funds managed by affiliates of Apollo Global Management LLC.
Cadillac Jack is a leading designer and supplier of electronic games and systems for the regulated global gaming industry with more than 13,000 units installed in hundreds of casinos across the United States and Mexico, the majority on a recurring revenue basis. The company is a leader in the Class II Native American and Mexican gaming markets and has recently established a growing business in Class III machines for the Native American, commercial and charity markets. Cadillac Jack has recently begun to develop online versions of some of its popular land-based game titles. Cadillac Jack’s product portfolio includes an expansive games library of more than 165 game titles available on multiple cabinets, progressive product lines, and slot management services and systems.