WINNIPEG, MB, Dec. 30, 2020 /CNW/ - Pollard Banknote
Limited (TSX: PBL) ("Pollard Banknote" or the "Company")
announced today that it has signed a definitive agreement, and
closed the transaction, to purchase ("Acquisition") 100% of the
equity of Compliant Gaming LLC ("Compliant"), a leading provider of
electronic pull-tab gaming systems and products to the charitable
gaming market.
Compliant was founded in 2014 and offers a broad range of game
content and system support in the growing area of electronic gaming
and are currently the second largest supplier in the fast-growing
Minnesota market. Key to their
success has been a robust technology platform and engaging game
content.
Electronic pull-tabs were first introduced in Minnesota in 2012 to assist charitable
organizations in fundraising and to help the state in funding the
development of the US Bank Stadium in Minneapolis. Experienced in bars and
restaurants, electronic pull-tabs in Minnesota provide a gaming experience played
on portable tablets, which are provided by the establishment to its
customers. Since its start 8 years ago, this market for electronic
pull-tabs has grown exponentially, starting from zero in 2012 to
generating almost $100 million USD in
net gaming receipts (revenue less prize payouts) in the fiscal year
ended June 30, 2020. It has been the
fastest growing segment of the Minnesota charitable gaming market for the
past 5 years.
The acquisition of this technology for the charitable gaming
market provides a new solution offering for our portfolio as
Compliant's portable, tablet-based product is a strong complement
to our Diamond Game kiosk-based
technology. Compliant brings a successful operation in the
Minnesota market while positioning
us strategically for new jurisdictions looking to enter the
electronic side of the charitable gaming market, whether it be by
tablet or kiosk.
"We are very excited to be bringing the Compliant technology and
market presence into our charitable gaming business and believe
this will provide us with a valuable new product to help maintain
Pollard's leading presence in this market," stated John Pollard, Co-Chief Executive Officer of
Pollard Banknote. "The impressive success the Compliant team has
achieved in such a short period of time in Minnesota reflects the customer focus that is
consistent with our own strategic approach, and we believe there is
considerable opportunity for additional growth in this state. In
addition, more and more jurisdictions are looking at alternative
products and solutions to provide fundraising opportunities for
local charities and we feel Compliant's solutions provide an
attractive alternative for good causes in new markets."
Frederick Reis, Founder of
Compliant, stated "Compliant's unique electronic pull-tab and
integrated bingo system is complementary to Pollard's leadership
position in the charitable gaming market, and Compliant's expertise
will enhance Pollard's broad offering of charitable gaming products
to customers throughout North
America. We look forward to joining the Pollard team and to
continuing to deliver our signature personal commitment to our
customers and industry leading solutions for electronic
gaming."
The total Acquisition purchase price is $19.0 million U.S. dollars (approximately
$24.3 million CDN dollars using an
exchange rate of $1.28 CDN dollar per
U.S. dollar), prior to standard working capital adjustments and
potential future earn-out payments based on certain EBITDA targets.
The purchase price was funded from existing Pollard Banknote cash
resources and availability under our existing senior credit
facilities. The Acquisition is expected to be accretive to Pollard
Banknote's net income prior to amortization of related purchase
price accounting adjustments. The acquisition of Compliant has
closed and is not contingent on any approvals or financing.
The Compliant business will join our existing complement of
charitable gaming focused businesses, including our Diamond Game eGaming business unit and our
combined American Games and International Gamco paper-based
operations, in providing an extensive portfolio of products and
solutions to charities across North
America.
John Pollard concludes, "In
addition to retail excellence and outstanding games, digital
innovation is a cornerstone of Pollard's strategic objectives 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-based
solutions that meet our strategic objectives as well as generating
a strong financial return. We are honoured the Compliant team has
joined us and we look forward to continuing their strong record of
growth."
About Pollard Banknote
Pollard Banknote is a leading lottery partner to more than 60
lotteries worldwide, providing high quality instant ticket
products, licensed games, Schafer Systems and Fastrak retail
merchandising solutions, and a full suite of digital offerings,
ranging from world-class mkodo game apps to comprehensive 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 proceeds for good causes. Pollard Banknote
also provides pull-tab tickets, bingo paper, and its Diamond Game and Oasis-branded electronic ticket
machines to charitable and other gaming markets in North America. Established in 1907, Pollard
Banknote is owned approximately 67.3% by the Pollard family and
32.7% by public shareholders, and is publicly traded on the TSX
(PBL). For more information, please visit our website at
www.pollardbanknote.com.
Forward-looking Statements
Certain statements in this press release may constitute
"forward-looking" statements and information, which involve known
and unknown risks, uncertainties, and other factors that may cause
actual results, performance, or achievements to be materially
different from any future results, performance, or achievements
expressed or implied by such forward-looking statements. When used
in this document, such statements include such words as "may,"
"will," "expect," "believe," "plan," and other similar terminology.
These statements reflect management's current expectations
regarding future events and operating performance and speak only as
of the date of this document. There should not be an expectation
that such information will in all circumstances be updated,
supplemented, or revised whether as a result of new information,
changing circumstances, future events, or otherwise.
SOURCE Pollard Banknote Limited