Provider Amaya Gaming Group has announced it is to sell its Cadillac Jack subsidiary in an approximate C$476m ($375m) deal to AGS, an affiliate of private equity firm Apollo Global Management.
Cadillac Jack makes slot games and electronic bingo games for casinos and the proceeds from the planned sale will be used to lower debt.
AGS will pay Amaya $461m in cash and a $15m note that will be due on the eighth anniversary of the deal closing for shares in Amaya Americas Corp., the parent of Cadillac Jack.
The transaction is expected to be completed by the end of the year and is subject to the receipt of gaming regulatory and antitrust approvals.
Amaya CEO David Baazov said in a press release: “Cadillac Jack has grown its business significantly in new geographies and new markets under Amaya, and we are very proud of the efforts of its management and its employees.
“We are confident that combining Cadillac Jack with AGS presents a strong opportunity to expedite the company’s growth strategy, while at the same time crystallising on the strong value created in the business to benefit Amaya’s shareholders.”
Amaya had been looking to sell Cadillac Jack since October, after completing its $4.9bn purchase of Rational Group, the parent company of online operator PokerStars, in August.