AGS Buys Cadillac Jack Casino Games From Amaya For $476 Million

31 Mar, 2015 by Adrian Sterne

Font size -16+

Amaya Gaming, the parent company of PokerStars which is the biggest poker website in the world recently announced that it has sold its holdings in its Cadillac Jack casino game business to AGS an affiliate of Apollo Global Management (AGS) for $476-million. Canadian based Amaya Gaming decided to sell its stake as the company wants to focus on PokerStars and expanding its online gaming business.

Amaya Gaming has made a number of changes to its business expansion plans after the acquisition of PokerStars. The company completed a strategic review of its business during November 2014 and mapped out a clear strategy for the future.

The sale of Cadillac Jack is in line with the company’s vision as it looks to capitalize on the fast paced online gaming industry.

The deal was made for $461 million in cash along with a $15-million note that will be due on the 8th anniversary of the deal and will be for the shares of Amaya Americas Corp which is the parent (indirect) company for Cadillac Jack. Amaya acquired Cadillac Jack back in 2012 for $177 million and since then Cadillac Jack has significantly expanded its operations and increased its profits. Cadillac Jack has installed over 13,000 games in casinos and now has a library that has 165 game titles, some of which are now being converted into online games.

In a statement, David Lopez, the chief executive of AGS said

After what can only be categorized as an incredibly transformational year for AGS, the acquisition of Cadillac Jack further demonstrates that we are positioned to take the next step in establishing ourselves as a major player in the gaming industry

Amaya Gaming has been in the process of making a number of changes as last week the company announced that it would be spinning its Diamond Game Enterprises subsidiary via an IPO through a newly formed Innova Gaming Group. The Diamond Game is responsible for designing and developing games that target that lottery segment in North America. The shares of Diamond Game will now be owned by the Innova Gaming Group.

Although the deal between Amaya Gaming and AGS has been signed, it still needs to get the approval of a number of parties including the gaming industry regulators. Both companies expect the deal to be finalized before the end of this year.