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| | | | A-1 | | | |
| | | | B-1 | | | |
| | | | C-1 | | |
Date Announced
|
| |
Acquirer
|
| |
Target
|
| |
EV/TTM
Adjusted EBITDA Multiple |
|
February 2016 | | | Novomatic | | | Ainsworth | | |
10.3x
|
|
November 2015 | | | Ainsworth | | | Nova Tech | | |
8.5x
|
|
March 2015 | | | Apollo | | | Cadillac Jack | | |
8.8x
|
|
September 2014 | | | Global Cash Access | | | Multimedia Games | | |
9.2x
|
|
August 2014 | | | Scientific Games | | | Bally | | |
12.1x
|
|
July 2014 | | | GTECH | | |
International Game Technology
|
| |
8.6x
|
|
July 2014 | | | Aristocrat Leisure | | | Video Gaming Technologies | | |
8.2x
|
|
July 2013 | | | Bally Technologies | | | SHFL Entertainment | | |
14.3x
|
|
January 2013 | | | Scientific Games | | | WMS Industries | | |
6.2x
|
|
September 2012 | | | Amaya Gaming Group | | | Cadillac Jack | | |
4.7x
|
|
May 2010 | | | Vitruvian Partners | | | Inspired Gaming Group | | |
5.6x
|
|
January 2006 | | | Scientific Games | | | Global Draw | | |
5.4x
|
|
January 2006 | | | Lottomatica Group | | |
GTECH Holdings Corporation
|
| |
9.3x
|
|
November 2005 | | | Shuffle Master | | | Stargames Party | | |
12.4x
|
|
December 2004 | | |
GTECH Holdings Corporation
|
| | Atronic Americas | | |
8.0x
|
|
February 2004 | | | Jarden | | | USPC | | |
7.0x
|
|
November 2003 | | |
GTECH Holdings Corporation
|
| | Spielo Manufacturing | | |
5.4x
|
|
July 2001 | | |
International Game Technology
|
| | Anchor Gaming | | |
7.9x
|
|
| | | | | | Median | | |
8.3x
|
|
| | | | | | 25th Percentile | | |
6.3x
|
|
| | | | | | 75th percentile | | |
9.2x
|
|
Comparable Public Company Analysis
|
| |
Range
|
| |
Implied
Price Per Share(1) |
|
EV/LTM EBITDA (11/23/18)(3)
|
| |
6.4x – 8.7x
|
| |
$11.01 – $14.19
|
|
EV/2018E EBITDA(3)
|
| |
6.4x – 8.5x
|
| |
$10.28 – $13.07
|
|
EV/2019E EBITDA
|
| |
6.1x – 7.7x
|
| |
$9.75 – $11.84
|
|
P/LTM Earnings
|
| |
19.1x – 21.0x
|
| |
$11.53 – $12.66
|
|
P/2018E Earnings(3)
|
| |
13.9x – 22.2x
|
| |
$7.48 – $11.95
|
|
P/2019E Earnings
|
| |
10.8x – 29.0x
|
| |
$5.74 – $15.37
|
|
Premiums Paid Analysis
|
| |
Range
|
| |
Implied
Price Per Share(1) |
|
Small Cap – 1 Day
|
| |
15.6% – 44.3%
|
| |
$9.36 – $11.69
|
|
Small Cap – 14 Day
|
| |
20.1% – 50.4%
|
| |
$9.72 – $12.18
|
|
Small Cap – 30 Day
|
| |
18.8% – 49.9%
|
| |
$9.62 – $12.14
|
|
Casino/Gaming – 1 Day
|
| |
5.8% – 28.9%
|
| |
$8.57 – $10.44
|
|
Casino/Gaming – 14 Day
|
| |
6.1% – 36.8%
|
| |
$8.60 – $11.08
|
|
Casino/Gaming – 30 Day
|
| |
6.9% – 40.1%
|
| |
$8.66 – $11.35
|
|
CGEM – 1 Day
|
| |
7.0% – 28.1%
|
| |
$8.67 – $10.37
|
|
CGEM – 14 Day
|
| |
17.6% – 34.9%
|
| |
$9.52 – $10.92
|
|
CGEM – 30 Day
|
| |
25.8% – 47.1%
|
| |
$10.19 – $11.91
|
|
Name
|
| |
Total Options
Outstanding as of December 28, 2018 |
| |
Cash-Out Payment
for Options ($) |
| ||||||
Executive Officers | | | | | | | | | | | | | |
Alain Thieffry
|
| | | | 35,000 | | | | | $ | 197,155 | | |
Directors | | | | | | | | | | | | | |
Martin A. Berkowitz
|
| | | | 48,000 | | | | | $ | 257,400 | | |
Eric P. Endy
|
| | | | 19,500 | | | | | $ | 95,660 | | |
Charles R. Henry
|
| | | | 35,000 | | | | | $ | 198,433 | | |
Robert J. Kelly
|
| | | | 64,250 | | | | | $ | 353,085 | | |
Jean-Francois Lendais
|
| | | | 28,500 | | | | | $ | 142,625 | | |
| | |
Fiscal Year Ending December 31,
|
| | | | | | | |||||||||||||||||||||||||||||||||
($ in millions)
|
| |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| | | | | | | ||||||||||||||||||||||||
Total Revenue
|
| | | $ | 86,000 | | | | | $ | 81,745 | | | | | $ | 81,745 | | | | | $ | 81,745 | | | | | | | | | ||||||||||||
Total Gross Profit
|
| | | $ | 25,800 | | | | | $ | 23,706 | | | | | $ | 23,706 | | | | | $ | 23,706 | | | | | | | | | ||||||||||||
Total Operating Income
|
| | | $ | 6,100 | | | | | $ | 5,706 | | | | | | 5,346 | | | | | $ | 4,979 | | | | | | | | | ||||||||||||
Net Income
|
| | | $ | 4,350 | | | | | $ | 4,279 | | | | | $ | 4,009 | | | | | $ | 3,734 | | | | | | | | | ||||||||||||
Adjusted EBITDA Calculation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Net Income from Continuing Operations
|
| | | $ | 6,100 | | | | | $ | 4,279 | | | | | $ | 4,009 | | | | | $ | 3,734 | | | | | | | | | ||||||||||||
Income Tax Expense (Benefit)
|
| | | $ | 1,450 | | | | | $ | 1,426 | | | | | $ | 1,336 | | | | | $ | 1,245 | | | | | | | | | ||||||||||||
Depreciation and Amortization
|
| | | $ | 4,791 | | | | | $ | 4,811 | | | | | $ | 4,811 | | | | | $ | 4,811 | | | | | | | | | ||||||||||||
Adjusted EBITDA
|
| | | $ | 10,624 | | | | | $ | 10,499 | | | | | $ | 10,139 | | | | | $ | 9,772 | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Dividends Declared
|
| |||||||||
| | |
Common Stock
|
| |
Regular
Dividends |
| |
Special
Dividends |
| |||||||||||||||
| | |
High
|
| |
Low
|
| ||||||||||||||||||
Fiscal Year Ending December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter (until January 31, 2019)
|
| | | $ | 13.09 | | | | | $ | 12.90 | | | | | | — | | | | | | — | | |
Fiscal Year Ended December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 11.45 | | | | | $ | 9.20 | | | | | | — | | | | | | — | | |
Second Quarter
|
| | | $ | 9.98 | | | | | $ | 8.18 | | | | | | — | | | | | | — | | |
Third Quarter
|
| | | $ | 9.49 | | | | | $ | 8.02 | | | | | | — | | | | | | — | | |
Fourth Quarter
|
| | | $ | 13.44 | | | | | $ | 7.69 | | | | | | — | | | | | $ | 0.12 | | |
Fiscal Year Ended December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 12.00 | | | | | $ | 9.66 | | | | | | — | | | | | | — | | |
Second Quarter
|
| | | $ | 12.50 | | | | | $ | 9.13 | | | | | | — | | | | | | — | | |
Third Quarter
|
| | | $ | 12.12 | | | | | $ | 9.65 | | | | | | — | | | | | | — | | |
Fourth Quarter
|
| | | $ | 11.50 | | | | | $ | 10.35 | | | | | | — | | | | | $ | 0.12 | | |
Fiscal Year Ended December 31, 2016 | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 10.33 | | | | | $ | 8.51 | | | | | | — | | | | | | — | | |
Second Quarter
|
| | | $ | 9.98 | | | | | $ | 8.55 | | | | | | — | | | | | | — | | |
Third Quarter
|
| | | $ | 12.34 | | | | | $ | 9.12 | | | | | | — | | | | | | — | | |
Fourth Quarter
|
| | | $ | 11.95 | | | | | $ | 10.27 | | | | | | — | | | | | $ | 0.12 | | |
Fiscal Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 12.49 | | | | | $ | 8.00 | | | | | | — | | | | | | — | | |
Second Quarter
|
| | | $ | 13.40 | | | | | $ | 9.45 | | | | | | — | | | | | | — | | |
Third Quarter
|
| | | $ | 11.39 | | | | | $ | 9.50 | | | | | | — | | | | | | — | | |
Fourth Quarter
|
| | | $ | 10.31 | | | | | $ | 8.08 | | | | | | — | | | | | | — | | |
| | |
Shares of Common Stock
|
| ||||||||||||||||||||||||
Name of Beneficial Owner
|
| |
Ownership
|
| |
Options
Exercisable Within 60 Days |
| |
Beneficial
Ownership(1) |
| |
Percent of
Class(2) |
| | ||||||||||||||
Executive Officers, Directors and Director Nominees: | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Eric P. Endy
|
| | | | 168,707 | | | | | | 19,500 | | | | | | 188,207(3) | | | | | | 2.33% | | | | ||
Gregory S. Gronau
|
| | | | 76,555 | | | | | | 0 | | | | | | 76,555(10) | | | | | | * | | | | ||
Robert J. Kelly
|
| | | | — | | | | | | 64,250 | | | | | | 64,250 | | | | | | * | | | | ||
Charles R. Henry
|
| | | | — | | | | | | 35,000 | | | | | | 35,000 | | | | | | * | | | | ||
Martin A. Berkowitz
|
| | | | — | | | | | | 48,000 | | | | | | 48,000 | | | | | | * | | | | ||
Alain Thieffry
|
| | | | 16,000 | | | | | | 31,500 | | | | | | 47,500(4) | | | | | | * | | | | ||
Jean-Francois Lendais
|
| | | | 1 | | | | | | 28,500 | | | | | | 28,501(5) | | | | | | * | | | | ||
All executive officers, current directors and director nominees as a group
|
| | |
|
261,263
|
| | | |
|
226,750
|
| | | |
|
488,013
|
| | | |
|
6.03%
|
| | | ||
5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Elisabeth Carretté
|
| | | | 4,068,226 | | | | | | — | | | | | | 4,068,226(6) | | | | | | 50.31% | | | | ||
VN Capital Management, LLC
|
| | | | 789,310 | | | | | | — | | | | | | 789,310(7) | | | | | | 9.76% | | | | ||
James T. Vanasek
|
| | | | | | | | | | | | | | | | | | | | | | | | | | ||
Patrick Donnell Noone
|
| | | | | | | | | | | | | | | | | | | | | | | | | | ||
Gerard P. Charlier
|
| | | | 506,902 | | | | | | — | | | | | | 506,902(8) | | | | | | 6.27% | | | | ||
M.I.3 S.A.
|
| | | | 732,612 | | | | | | 732,612(9) | | | | | | | | | | | | 9.06% | | | |
|
Section 1
|
| | | | ||||||
|
MERGER TRANSACTION
|
| | | | ||||||
| | | | | A-5 | | | | |||
| | | | | A-6 | | | | |||
| | | | | A-6 | | | | |||
| | | | | A-6 | | | | |||
| | | | | A-7 | | | | |||
| | | | | A-7 | | | | |||
| | | | | A-9 | | | | |||
| | | | | A-10 | | | | |||
|
Section 2
|
| | | | ||||||
|
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
|
| | | | ||||||
| | | | | A-10 | | | | |||
| | | | | A-11 | | | | |||
| | | | | A-11 | | | | |||
| | | | | A-12 | | | | |||
| | | | | A-13 | | | | |||
| | | | | A-13 | | | | |||
| | | | | A-13 | | | | |||
| | | | | A-14 | | | | |||
| | | | | A-16 | | | | |||
| | | | | A-18 | | | | |||
| | | | | A-18 | | | | |||
| | | | | A-18 | | | | |||
| | | | | A-19 | | | | |||
| | | | | A-19 | | | | |||
| | | | | A-19 | | | | |||
| | | | | A-21 | | | | |||
| | | | | A-23 | | | | |||
| | | | | A-24 | | | | |||
| | | | | A-24 | | | | |||
| | | | | A-24 | | | | |||
| | | | | A-24 | | | | |||
| | | | | A-25 | | | | |||
| | | | | A-25 | | | | |||
| | | | | A-25 | | | | |||
| | | | | A-25 | | | | |||
| | | | | A-25 | | | | |||
| | | | | A-25 | | | | |||
| | | | | A-26 | | | |
|
Section 3
|
| | | | ||||||
|
REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
|
| | | | ||||||
| | | | | A-26 | | | | |||
| | | | | A-26 | | | | |||
| | | | | A-26 | | | | |||
| | | | | A-26 | | | | |||
| | | | | A-27 | | | | |||
| | | | | A-27 | | | | |||
| | | | | A-27 | | | | |||
| | | | | A-27 | | | | |||
| | | | | A-27 | | | | |||
| | | | | A-28 | | | | |||
| | | | | A-28 | | | | |||
| | | | | A-28 | | | | |||
|
Section 4
|
| | | | ||||||
|
CERTAIN COVENANTS OF THE COMPANY
|
| | | | ||||||
| | | | | A-28 | | | | |||
| | | | | A-29 | | | | |||
| | | | | A-32 | | | | |||
| | | | | A-34 | | | | |||
|
Section 5
|
| | | | ||||||
|
ADDITIONAL COVENANTS OF THE PARTIES
|
| | | | ||||||
| | | | | A-34 | | | | |||
| | | | | A-36 | | | | |||
| | | | | A-37 | | | | |||
| | | | | A-39 | | | | |||
| | | | | A-39 | | | | |||
| | | | | A-40 | | | | |||
| | | | | A-41 | | | | |||
| | | | | A-41 | | | | |||
| | | | | A-41 | | | | |||
| | | | | A-41 | | | | |||
| | | | | A-41 | | | | |||
| | | | | A-42 | | | | |||
| | | | | A-42 | | | | |||
| | | | | A-43 | | | |
|
Section 6
|
| | | | ||||||
|
CONDITIONS PRECEDENT TO THE MERGER
|
| | | | ||||||
| | | | | A-44 | | | | |||
| | | | | A-44 | | | | |||
| | | | | A-45 | | | | |||
| | | | | A-45 | | | | |||
|
Section 7
|
| | | | ||||||
|
TERMINATION
|
| | | | ||||||
| | | | | A-45 | | | | |||
| | | | | A-46 | | | | |||
| | | | | A-47 | | | | |||
|
Section 8
|
| | | | ||||||
|
MISCELLANEOUS PROVISIONS
|
| | | | ||||||
| | | | | A-49 | | | | |||
| | | | | A-49 | | | | |||
| | | | | A-49 | | | | |||
| | | | | A-49 | | | | |||
| | | | | A-49 | | | | |||
| | | | | A-50 | | | | |||
| | | | | A-50 | | | | |||
| | | | | A-50 | | | | |||
| | | | | A-50 | | | | |||
| | | | | A-51 | | | | |||
| | | | | A-52 | | | | |||
| | | | | A-52 | | | | |||
| | | | | A-52 | | | |
Schedule
|
| |
Description
|
|
1.6(a) | | | Paying Agent | |
1.6(e) | | | Outstanding Company Options | |
2.1(b)(i) | | | Company Investment Entities | |
2.1(b)(ii) | | | Company Subsidiaries | |
2.3(d) | | | Company Options and Company SARs | |
2.7(a) | | | Owned Real Property | |
2.7(b) | | | Leased Real Property | |
2.8(a)(i) | | | Company-Owned Registered IP | |
2.8(a)(ii) | | | Company-Licensed Registered IP | |
2.8(h) | | | Data Security | |
2.8(j)(i) | | | Open Source Materials | |
2.8(j)(ii) | | | Exceptions to Open Source Incorporation | |
2.9(a) | | | Material Contracts | |
2.9(b) | | | Exceptions to Availability of Material Contracts | |
2.12 | | | Compliance with Gaming Laws | |
2.14(b) | | | Company Gaming Approvals | |
2.15(c) | | | Tax Matters | |
2.16(b) | | | Collective Bargaining Agreements | |
2.16(c) | | | Pending or Threatened Legal Proceedings | |
2.16(e) | | | Material Employee Plans | |
2.16(f) | | | Special Employee Benefits | |
2.16(j) | | | Transaction Bonuses | |
2.19(a) | | | Legal Proceedings | |
2.19(b) | | | Orders | |
2.22(a) | | | Non-Contravention; Consents | |
4.1(b)(i) | | | Properties Subject to Sampling | |
4.2 | | | Operation of the Acquired Companies’ Business | |
4.2(b)(i)(A) | | | Dividends | |
4.2(b)(ix) | | | Capital Expenditures | |
5.5(a) | | | Indemnification of Officers and Directors | |
6.2(e) | | | Required Gaming Approvals | |
6.2(g) | | | Required Consents | |
Name and Address
|
| |
Number of Shares
|
|
HOLDING WILSON, S.A. 3, Avenue du Président Wilson Paris 75116 France Attention: Alain Thieffry Email: amthieff@gmail.com |
| | 4,048,124 Shares | |
ELISABETH CARRETTÉ 3, Avenue du Président Wilson Paris 75116 France |
| | 20,102 Shares | |