Toronto listed Amaya Gaming Plc has confirmed that it has entered a definitive agreement for the sale of slot manufacturer Cadillac Jack to AGS an affiliate of fund management firm Apollo Global Management LLC.
Amaya Gaming has agreed to sell its subsidiary slots manufacturer for a reported CAD $476 million (+ £265 million), as the company chooses to focus its core competencies on growing its PokerStars and Full Tilt igaming brands.
AGS will offer CAD $260 million in cash for its acquisition, and the remainder of the sum in interest of 5% interest per annum.
“Cadillac Jack has grown its business significantly in new geographies and new markets under Amaya, and we are very proud of the efforts of its management and its employees,” said Amaya CEO David Baazov.
“We are confident that combining Cadillac Jack with AGS presents a strong opportunity to expedite the company’s growth strategy, while at the same time crystallizing on the strong value created in the business to benefit Amaya’s shareholders.”
Amaya Gaming will looks to complete its sale transaction of Cadillac Jack to AGS by the end of 2015, clearing all acquisition procedures and gambling regulatory requirements.