GTECH Completes Acquisition Of Spielo Manufacturing Incorporated
April 30 2004 - 4:30PM
PR Newswire (US)
GTECH Completes Acquisition Of Spielo Manufacturing Incorporated
WEST GREENWICH, R.I., April 30 /PRNewswire-FirstCall/ -- GTECH
Holdings Corporation today announced that it has completed the
acquisition of Spielo Manufacturing Incorporated, a leading
provider of video lottery terminals (VLTs) and related products and
services to the global gaming industry. The enterprise purchase
price for Spielo was an all-cash transaction of approximately
US$150 million. In addition, Spielo shareholders have received an
initial earn-out payment of approximately US$7 million, as part of
a maximum amount of up to US$35 million, based upon Spielo
achieving certain VLT installation objectives, over time, in New
York. "The acquisition of Spielo furthers our growth strategy in
our core lottery space by broadening and strengthening our
offerings in the rapidly growing VLT business," said GTECH
President and CEO W. Bruce Turner. "With the acquisition now
complete, GTECH is better able to deliver a comprehensive,
integrated VLT solution with a single point of contact and
accountability. Spielo is a great strategic fit for GTECH, with
many opportunities to leverage in areas such as content, online
technology, and other innovations," continued Mr. Turner. "Our VLT
business will also provide an avenue for expanding the value of our
Enterprise Series platform in new ways." Spielo will operate as a
wholly-owned subsidiary of GTECH and its manufacturing operations
will remain in Canada. GTECH expects that Spielo will provide a
revenue contribution of US$70 million to US$75 million starting in
the second quarter of fiscal 2005. For the first 12 months of
operation post-acquisition, Spielo is expected to contribute
revenues of US$90 million to US$100 million, and earnings per share
to GTECH in the range of US$0.01 to US$0.02. Certain statements
contained in this press release are forward looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Such statements
include, without limitation, statements relating to the prospects
and financial outlook for the Company, which reflect management
assumptions regarding: (i) the future prospects for and stability
of the lottery industry and other businesses in which the Company
is engaged or expects to be engaged, (ii) the future operating and
financial performance of the Company (including, without
limitation, expected future growth in revenues, profit margins and
earnings per share), and (iii) the ability of the Company to retain
existing business and to obtain and retain new business. Such
forward looking statements reflect management's assessment based on
information currently available, but are not guarantees and are
subject to risks and uncertainties that could cause actual results
to differ materially from those contemplated in the forward looking
statements. These risks and uncertainties include, but are not
limited to, those set forth above, in the Company's subsequent
press releases and on reports by the Company on Forms 10-K, 10-Q
and 8-K, and other reports and filings with the Securities and
Exchange Commission, as well as risks and uncertainties respecting:
(i) the potential impact of extensive and evolving government
regulations upon the Company's business; (ii) the ability of the
Company to continue to retain and extend its existing contracts and
win new contracts; (iii) the possibility of slower than expected
growth or declines in sales of lottery and gaming goods and
services by the Company or the Company's customers; (iv) exposure
to foreign currency fluctuations; (v) risks and uncertainties
inherent in doing business in foreign jurisdictions; (vi) the
relatively large percentage of the Company's revenues attributable
to a relatively small number of the Company's customers; (vii) the
possibility of significant fluctuation of quarterly operating
results; (viii) the intensity of competition in the lottery and
gaming industries; (ix) the possibility of substantial penalties
under and/or termination of the Company's contracts; (x) the
ability of the Company to respond to technological change and to
satisfy the future technological demands of its customers; (xi)
opposition to expansion of lottery and gaming; (xii) the Company's
ability to attract and retain key employees; and (xiii) the
possibility of adverse determinations in pending legal proceedings.
GTECH, a leading global information technology company with over $1
billion in revenues and 5,400 people in 45 countries, provides
software, networks, and professional services that power
high-performance, transaction processing solutions. The Company's
core market is the lottery industry, with a growing presence in
financial services transaction processing. For more information
about the Company, please visit GTECH's website at
http://www.gtech.com/. Contact: Robert K. Vincent Public Affairs
GTECH Corporation 401-392-7452 DATASOURCE: GTECH CONTACT: Robert K.
Vincent, Public Affairs, GTECH Corporation, +1-401-392-7452 Web
site: http://www.gtech.com/
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