West Greenwich, Rhode Islan-based Gtech
Holdings Corp., the world’s biggest supplier of online gaming
systems and services, agreed to buy Interlott Technologies Inc.,
the No. 1 maker of instant-ticket vending machines, for about $85
million in cash, stock and assumed debt.
Gtech will pay $9 in cash or stock for each Interlott share, 15 percent more than Interlott’s closing price Friday. West
Greenwich, Rhode Island-based Gtech also will assume about $21
million in debt, Gtech spokesman Robert Vincent said.
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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 as much as $38 million this year, and add 3 cents to 4 cents a share
to earnings. Interlott has about 30,000 machines.
Shares of Gtech rose $1.56 to $32.19 as of 4:05 p.m. in New York Stock Exchange composite trading. Mason, Ohio-based Interlott
rose 95 cents, or 12 percent, to $8.80 as of 3:59 p.m. in American
Stock Exchange trading.
Gtech, which developed the Quick Pick gaming system to
randomly generate lottery numbers, expects to complete the
transaction by the end of July. It will report final results for
the year ended Feb. 22 on April 10, Vincent said.
Bloomberg News
