Scientific Games acquires Oberthur
NEW YORK – (PRESS RELEASE) -- Scientific Games (Nasdaq: SGMS) announced today that it has acquired Oberthur Gaming Technologies, another leading manufacturer of instant lottery tickets. Scientific Games will pay approximately $100 million (approximately one-third of which is attributable to U.S. assets), subject to certain adjustments. The Company expects this acquisition to be neutral to 2007 earnings and accretive in 2008.
OGT reported revenues in 2006 of approximately $140 million (CAD). OGT operates three instant ticket plants located in Montreal, Canada; Sydney, Australia and San Antonio, Texas that have a total estimated capacity of approximately 13 billion instant tickets (2" x 4" equivalents) per year.
Lorne Weil, Chairman and CEO of Scientific Games commented on the deal, "OGT has a strong international presence in Canada and Australia, two important gaming markets for Scientific Games. They also supply Francaise Des Jeux, one of our most important European customers, and ONCE, a coveted customer in Spain. We look forward to offering an increased array of products and services to OGT's existing customers. OGT also has an important portfolio of printing-related intellectual property, as well as core competencies for extended play styles such as Bingo. Our goal is to offer increased customer service, while simultaneously improving efficiency, productivity and competitiveness through cost synergies. We welcome OGT to the Scientific Games family."
Emmanuele Savare, former President and CEO of Oberthur Gaming Technologies commented on the deal, "We think that this transaction is of great benefit to our employees and to our customers and in the end, to the entire lottery industry. This transaction will allow us to achieve efficiencies in manufacturing, purchasing and distribution for the entire benefit of our customers. The combined strengths of our companies will allow us to offer our customers a considerably broader product offering across the full breadth of lottery services than was possible in the past."
