eBet to acquire gaming loyalty systems competitor
The Australian gaming and betting technology company, eBet, is to acquire the business and assets of its competitor, Paecu, which operates card-based loyalty system supplier, Turbo Bonus.
In announcing the acquisition, eBet highlighted the key features of the deal, and said that Turbo has been a consistently profitable business over many years and now derives the majority of its revenue and profits from its existing customer base. It supplies card-based loyalty systems for Australian gaming venues, with more than 230 sites in New South Wales, Queensland and South Australia, collectively operating more than 23,000 gaming machines.
The acquisition should offer significant strategic value, as well as an opportunity to rationalise the merged operations, and will greatly extend the depth of eBet's product line-up. Following the acquisition, eBet's gaming systems division will have around 400 customers, operating a total of almost 40,000 gaming machines. Turbo's founder and managing director will remain involved with the merged operations in a senior consulting role.
New markets Subject to necessary approvals, the deal will provide eBet with a foothold in Southern Australia (where Turbo recently began installing systems in hotels) and Queensland (where Turbo is represented by QTAB). It will also provide the cash flow and well-established operating platform that will allow eBet to accelerate the rollout of its card-based cashless gaming technology in New South Wales, and later elsewhere.
Keith Cullen, managing director for eBet, commented, "The acquisition of Turbo will significantly strengthen eBet's position, particularly in New South Wales, where Turbo has some 192 customers operating more than 21,000 gaming machines. I believe the acquisition is one of the most important developments in the company's history."
eBet has set the date for a general meeting of shareholders on 4 November 2002 to consider resolutions relating to the acquisition. A notice of meeting and an explanatory memorandum has already been mailed to shareholders.
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