Pollard Banknote announces the acquisition of Compliant Gaming
WINNIPEG, MB, Dec. 30 2020 / CNW / – Pollard Banknote Limited (TSX: PBL) (“Pollard Banknote” or the “Company”) today announced that it has signed a definitive agreement, and completed the transaction, to purchase (“Acquisition”) 100% of the shares of Compliant Gaming LLC (“Compliant Gaming LLC” “), a leading provider of electronic pull-tab game systems and products to the charitable gaming market.
Compliant was founded in 2014 and offers a wide range of gaming content and system support in the growing field of electronic games and is currently the second largest provider in the rapidly growing industry. Minnesota Marlet. The key to their success has been a robust technology platform and engaging in-game content.
Electronic drawbars were first introduced in Minnesota in 2012 to help charities raise funds and help the state finance the development of the Bank of the United States stadium in Minneapolis. Experienced in bars and restaurants, electronic zippers in Minnesota provide a gaming experience played on portable tablets, which are provided by the establishment to its customers. Since its inception 8 years ago, this electronic zipper market has grown exponentially, from zero in 2012 to almost US $ 100 million in net gaming revenue (revenue less prize payouts) in the year ended June 30, 2020. It is the fastest growing segment of the Minnesota charity gaming market over the past 5 years.
Acquiring this technology for the charity gaming market offers a new solution offering for our portfolio, as Compliant’s tablet-based portable product is a strong complement to our Diamond game kiosk-based technology. Compliant brings successful operation in the Minnesota market while strategically positioning us for new jurisdictions looking to enter the electronic charitable gaming market, whether through tablet or kiosk.
“We are very excited to bring compliant technology and market presence into our charity gaming business and believe this will provide us with a valuable new product to help maintain Pollard’s leading presence in this market,” said Jean Pollard, Co-Managing Director of Pollard Banknote. âThe impressive success that the Compliant team has achieved in such a short time Minnesota reflects customer focus that is consistent with our own strategic approach, and we believe there is considerable opportunity for further growth in this state. Additionally, more and more jurisdictions are looking for alternative products and solutions to provide fundraising opportunities for local charities and we believe Compliant’s solutions provide an attractive alternative for good causes in new markets. “
FrÃ©dÃ©ric Reis, Founder of Compliant, said: âCompliant’s unique electronic drawbar and integrated bingo system complements Pollard’s leading position in the charitable gaming market, and Compliant’s expertise will enhance the broad product offering. of Pollard charity games to customers across North America. We look forward to joining the Pollard team and continuing to deliver on our personal commitment to our customers and our industry-leading solutions for electronic games. “
The total purchase price of the Acquisition is $ 19.0 million US dollars (approx. 24.3 million Canadian dollars dollars using an exchange rate of CA $ 1.28 dollar per US dollar), before standard working capital adjustments and potential future earn-out payments based on certain EBITDA targets. The purchase price was funded from Pollard Banknote’s existing liquidity and availability under our existing senior credit facilities. The acquisition is expected to have an accretive effect on Pollard Banknote’s net income before amortization of accounting adjustments related to the purchase price. The acquisition of Compliant has been completed and is not subject to any approval or financing.
The Compliant business will join our existing complement of charitable gaming-focused businesses, including our Diamond game the eGaming business unit and our combined paper-based American Games and International Gamco operations, providing a broad portfolio of products and solutions to charities across North America.
Jean Pollard concludes, âIn addition to retail excellence and exceptional games, digital innovation is a cornerstone of Pollard’s strategic goals and the acquisition of Compliant further expands our digital expertise. Pollard Banknote is committed to expanding our leadership role in the charitable gaming market and focusing on technology solutions-based solutions that meet our strategic goals while generating strong financial performance. We are honored that the Compliant team has joined us and look forward to continuing their strong growth record.
About Pollard Banknote
Pollard Banknote is a major lottery partner of over 60 lotteries around the world. player engagement and iLottery solutions, including strategic marketing and management services. The company is a proven innovator and has decades of experience helping lotteries to maximize player engagement, sales and revenue for good causes. Pollard Banknote also provides tab tickets, bingo paper and its Diamond game and Oasis-branded electronic ticket machines at charity markets and other games of North America. Founded in 1907, Pollard Banknote is approximately 67.3% owned by the Pollard family and 32.7% by public shareholders, and is listed on the TSX (PBL). For more information, please visit our website at www.pollardbanknote.com.
Certain statements contained in this press release may constitute “forward-looking” statements and information, which involve known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from results, performance, or achievements expressed or implied by such forward-looking statements. When used in this document, these statements include words such as “may”, “will”, “expect”, “believe”, “plan” and other similar terms. These statements reflect management‘s current expectations regarding future events and operational performance and speak only as of the date of this document. This information should not be expected to be updated, supplemented or revised at all times, whether as a result of new information, changing circumstances, future events or otherwise.
SOURCE Pollard Banknote Limited
For further information: Doug Pollard, Co-CEO, Email: [emailÂ protected]; John Pollard, Co-Managing Director, Email: [emailÂ protected]; Rob Rose, Chief Financial Officer, Email: [emailÂ protected]; Pollard Banknote Limited, Telephone: (204) 474-2323