Australian gaming machines and content provider Ainsworth Game Technology (AGT) has completed the acquisition of MTD Gaming in a deal worth up to US$26m.
AGT will pay an initial $13m to acquire MTD – a developer and supplier of poker, keno and video reel content – with a further $13m payable depending on the delivery of certain financial targets and contract renewals.
The purchase, AGT said, will be funded using existing debt facilities and cash reserves, with the provider expecting the deal to be earnings accretive in the first year after completion.
MTD games are currently installed across Montana, Louisiana and South Dakota in the US, and AGT said this content will complement its existing suite of games.
AGT added that it will now seek out further opportunities for these products, in territories such as Nevada, California, Arizona and New Mexico.
“The acquisition marks another positive step in transitioning AGT to growth and improved profitability,” AGT chief executive Lawrence Levy said. “MTD’s unique poker and keno games are a great fit for our existing Class II and Class III offerings in the US and follows the global launch of our new A-Star cabinet hardware in February 2020.
“We expect to drive incremental revenues by offering these proven and highly successful games to customers in our established markets where Ainsworth operates, including California and Nevada.”
MTD president Dan Tessmer added: “We are excited to join the Ainsworth team and feel the synergies of this acquisition will be of great value to both MTD and Ainsworth customers.”