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Pollard Banknote to buy Innova
Posted on Thursday, 20 April 2017 08:54
Lottery ticket supplier Pollard Banknote is acquiring Innova Gaming Group (Innova) for around CAD 42.70 million (USD 31.80 million) in cash as it seeks a larger scale to strengthen its position in the gambling sector.
The unsolicited bid comes less than two years after the gaming systems developer completed an initial public offering that raised CAD 49.08 million.
Pollard is offering to pay CAD 2.10 per share, representing a 5.4 per cent discount to Innova’s close on 18th April, the last trading day prior to the deal being announced.
The two companies deal with many of the same customers and both currently trade on the Toronto Stock Exchange.
John Pollard, co-chief executive of Pollard said: “We believe this is a compelling opportunity for Innova shareholders to receive a full and fair price for their shares.
“On completion of the offer, we expect Pollard Banknote will be well-positioned to expand key customer relationships and achieve economies and efficiencies of scale which exceed what Innova could achieve as a standalone company.”
Part-owned by Amaya, the target is the operator of Diamond Game Enterprises, a Los Angeles-headquartered gaming firm founded in 1994.
The Innova unit currently partners with five lotteries in North America for its flagship product LT-3, a lottery vending machine that displays the results of each ticket on its screen in an entertaining way.
Elsewhere in the gaming industry, a consortium backed by private equity giant Kohlberg Kravis Roberts revised its bid to purchase Tatts Group for about AUD 7.20 billion (USD 5.44 billion) yesterday.
The group is competing against Tabcorp, which is offering around USD 7.40 billion for the Queensland-based betting firm.
If the merger of both Australian companies goes through, it could form a gambling giant worth over AUD 10.00 billion, the Sydney Morning Herald reported.
© Zephus Ltd