Gamco was founded in 1983 and has built its business largely on innovating new products for charitable gaming markets and has earned significant market share during its 35 years in business. Gamco pioneered many of the industry’s significant game developments such as criss-cross play, progressive seal card games, bingo event games, video verification and electronic pull tabs. Gamco’s Oasis Gaming division was formed in 1991 and was the first business to market server-based, finite, electronic pull-tab systems. Oasis Gaming provides electronic enhancements for the paper game, as well as a networked, server-based electronic pull-tab gaming system, consisting of a game center, games for player terminals, and a game reporting system for lottery management or charitable gaming regulators. Based in Omaha, Nebraska, Gamco employs 160 full-time employees.
“We are very excited about bringing the Gamco team into our organization and believe it will be a powerful combination with our existing charitable gaming division, American Games, and our recently acquired Diamond Game business”, said John Pollard, Co-Chief Executive Officer of Pollard Banknote. “The combination of these businesses will create a true leader in the charitable gaming industry, becoming the second largest supplier and the partner of choice for our customers and charities across North America and, indeed, around the world. This will bring together the top products in the industry and drive innovation in the changing landscape of charitable gaming.”
Phillip Glassman, founder and owner of Gamco stated, “Over the last 35 years, our employees and customers have become family and friends, making this a very important decision, one we’ve contemplated for a long time. We feel that joining our business with Pollard Banknote and American Games can continue to provide the stability our customers and employees are accustomed to. I’m hopeful it will go well beyond that, strengthening the companies and providing new products, as well as alternatives to existing ones.”
Gamco’s business will be combined with Pollard Banknote’s subsidiary, American Games, approximately doubling our charitable gaming revenue, and the complimentary nature of the businesses will provide unique opportunities to offer the complete portfolio of pull-tab tickets, bingo paper, vending machines and electronic gaming machines to a broad range of their combined customer base. The strong manufacturing resources present in both organizations will allow for significant future synergies in innovations, manufacturing economies of scale and new product development. Gamco’s location in Omaha, Nebraska, just a few minutes away from American Games’ facility in Council Bluffs, Iowa, presents ample opportunity to leverage the capabilities of both work forces.
Gamco’s Oasis Gaming electronic pull-tab system and other e-gaming products will be added to Pollard Banknote’s existing e-gaming portfolio of Diamond Game Enterprises Break Open Ticket (“BOT”) dispensers and systems. Pollard Banknote and current Oasis management will work together to create new opportunities for development of a broader e-gaming product line and developing new markets for these products.
Steven Fingold, current President of American Games, will take on this role for the combined operations of American Games and Gamco. Pete Svendgard, current Vice President of Sales and Marketing for Gamco, will assume this role for the new organization. They will lead the combined existing management teams from both businesses to achieve anticipated significant success for this new venture. Phillip Glassman commented, “I’m very confident that Steven and Pete will do everything they can to make this happen.”
The total Acquisition purchase price is $17.6 million U.S. dollars (approximately $21.8 million CDN dollars using an exchange rate of $1.24 CDN dollar per U.S. dollar). 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 Gamco has closed and is not contingent on any approvals or financing.
John Pollard concludes, “This acquisition continues Pollard Banknote’s commitment to grow our organization both organically and through acquisitions to expand our leadership role as partner of choice in the lottery and charitable gaming sectors. We are honoured that Phil Glassman and the Gamco team have chosen to join us, and look forward to working with them.”