Gtech Holdings Corp.based in West Greenwich, RI, a supplier and operator of lotteries in
43 countries, plans to buy ticket vending machine maker Interlott
Technologies Inc. for about $85 million in cash, stock and debt.
Gtech will pay $9 for each Interlott share. Gtech said in a statement distributed by PRNewswire. That’s 15 percent more than Interlott’s closing price
Friday. Gtech also said it will assume about $21 million in debt.
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The purchase, which will be completed by late July, will help Gtech expand its lottery business as Interlott’s machines are used
to dispense lottery tickets, Gtech said.
The purchase will expand the services and products Gtech
offers to supermarkets, convenience stores and lottery-ticket vendors. Gtech plans to boost sales by supplying Interlott’s vending machines to Gtech customers outside the U.S.
“Historically, over 90 percent of all instant-ticket vending machine sales have been in the U.S.,” Gtech Chief Executive
Officer Bruce Turner said during a conference call.
The transaction is expected to boost Gtech’s revenue by $33 million to $38 million in fiscal 2004 and add 3 cents to 4 cents a share to earnings for the
year.
Gtech shares rose 53 cents to $30.63 Friday in New York Stock
Exchange composite trading. Mason, Ohio-based Interlott rose30 cents to $7.85 in American Stock Exchange composite trading.
Bloomberg News
