Ainsworth Game Technologies has entered into a binding agreement to purchase 100 percent of Nova Technologies, a South Carolina-based manufacturer of Class II slot machine games and devices, for $38 million.
According to a company press release, the transaction is targeted for closing in the first quarter or 2016, subject to all necessary regulatory approvals. The price represents a multiple of approximately 8.1-8.5 times Trailing Twelve Months EBITDA, depending upon the exact date of close.
For more than a decade, Nova has been a manufacturer of Class II games and systems for tribal gaming facilities, as well as deploying selected Class III games in certain markets. The company’s game library has in excess of 30 proven Class II titles placed across more than 1,300 gaming positions earning a daily fee in 11 markets throughout the U.S.
“We are very pleased to join forces with Ainsworth,” said Nova CEO Jamie Tzouvelekas. “This is a natural next step for Nova, as we feel Ainsworth’s support and involvement will help unlock our true potential in Class II and other markets. Taking Ainsworth’s extensive and world-class content library and bringing it to the Class II environment will surely be a win-win for our customers who are always looking for new and compelling content.”
Tzouvelekas and his team are all expected to remain with AGI post-close.
With this acquisition, Ainsworth brings the number of units under gaming operation on daily fee to over 2,600 in North America, approximately doubling the existing number of products under gaming operation.
“We are very excited to announce the acquisition of Nova, as it demonstrates our continued focus on growth in the key North American market,” said Ainsworth CEO Danny Gladstone. “The transaction allows us to enter Class II gaming in an immediate and significant manner. This deal represents a complementary extension of available product to the direct benefit of AGI’s current customer base across the Americas. In addition, this acquisition is earnings accretive from day one. For these reasons, it makes both great strategic and financial sense for Ainsworth."
Ainsworth Game Technology is also in the process of completing construction on a new 291,000-square-foot headquarters office in Las Vegas.