RENO, Nev., Oct. 2 /PRNewswire-FirstCall/ -- International Game Technology and AC Coin & Slot announced today a restructuring of the companies' long-standing relationship. Under a new agreement, IGT has purchased the distributorship for new IGT machine sales in Atlantic City and the Caribbean from AC Coin & Slot for $20.6 million, including $10.6 million in cash consideration. Also, IGT and AC Coin & Slot have amended the terms of the AC Coin & Slot proprietary game agreement.
The original 1983 agreement between IGT and AC Coin & Slot granted AC Coin & Slot exclusive rights to distribute IGT games in Atlantic City. The agreement was later amended to include the Caribbean. In 1994, the two companies entered into an agreement that allowed AC Coin & Slot to utilize IGT base machines in all of its proprietary bonusing slot games.
Under the new agreement, IGT will now have direct access to sell games to casino customers in Atlantic City and the Caribbean. The combined transactions will provide AC Coin & Slot with the resources and opportunities to develop the core of its business and continue future growth and product development.
The new terms enable AC Coin & Slot to sell proprietary games outright, as well as offer a lease-to-own, or traditional lease structures. The company will retain the right to utilize IGT's award-winning base machines and platforms to continue to develop its future product offering. AC Coin & Slot is now also free to seek alternative platforms to develop games in certain other gaming jurisdictions worldwide as well as seek out new partnerships in the Class II, and Central Determination Systems markets.
"This restructuring provides IGT the opportunity to sell direct to our casino customers in Atlantic City and the Caribbean," said Craig Billings, vice president of corporate finance and investor relations for IGT. "We look forward to working directly with these valued customers and to supporting AC Coin & Slot as they continue to seek new efficiencies and growth opportunities."
"This is a true win-win for both companies and reflects the dramatic growth and evolution AC Coin & Slot and IGT have experienced in 25 years since the original agreement," said Mac Seelig, president and founder of AC Coin & Slot. "We are incredibly excited to embark upon this new phase of growth."
About IGT
International Game Technology (http://www.igt.com/) is a global company specializing in the design, development, manufacturing, distribution and sales of computerized gaming machines and systems products.
Statements in this release, which are not historical facts, are "forward looking" statements under the Private Securities Litigation Reform Act of 1995. Although IGT believes that the expectations reflected in any of its forward-looking statements are reasonable, actual results could differ materially from those projected or assumed. IGT's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent known and unknown risks and uncertainties. IGT does not intend, and undertakes no obligation, to update forward-looking statements to reflect future events or circumstances.
Information on risks and factors that could affect IGT's business and financial results are included in their public filings made with the Securities and Exchange Commission.
About AC Coin & Slot
In business since 1978, AC Coin & Slot® is the largest slot manufacturer and diversified casino supply company on the East Coast and one of the largest privately-owned companies of its kind in the world. The company offers turnkey solutions for casinos that encompass some of the highest earning proprietary bonusing slot machines and community games in the industry today; AC Coin & Slot holds over 130 patents on these products. The company also holds over 180 gaming licenses in all major gaming jurisdictions in North America, and the Caribbean and is licensed in all Canadian provinces. AC Coin & Slot utilizes proven IGT pay tables in all bonusing slot machines. The company continues to provide some of the best custom interior signage, sculpted displays, ergonomic seating, and slot bases, all of which can be combined to form custom-themed slot environments. For further information about our company, our people and our innovations, please visit http://www.ac-coin.com/.
International Game Technology
CONTACT: Craig Billings, Vice President, Corporate Finance/Investor
Relations of International Game Technology, 1-866-296-4232; or Aimee Schultz,
Director of Marketing/PR of AC Coin & Slot, +1-609-641-7811 ext. 199
Web Site: http://www.igt.com/
