MathExtremist
MathExtremist
Joined: Aug 31, 2010
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August 31st, 2016 at 7:34:27 AM permalink
And it's official, DEQ has been sold:

http://www.prnewswire.com/news-releases/scientific-games-announces-definitive-agreement-to-acquire-deq-systems-300320565.html

For what it's worth, the deal value looks to be about $25M CAD, or in the neighborhood of 3x annual revenues. That seems fair especially since the company kept losing money. If Roger and team can turn around the operations part by leveraging the existing SHFL infrastructure, it's not unreasonable to target a few million/year in increased gross profits for a 10% return on investment. And this is all-cash; it's certainly not the upside-down type deal that Galaxy did when they spent about the same amount on 21+3.
Last edited by: MathExtremist on Aug 31, 2016
"In my own case, when it seemed to me after a long illness that death was close at hand, I found no little solace in playing constantly at dice." -- Girolamo Cardano, 1563
mrsuit31
mrsuit31
Joined: May 29, 2010
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August 31st, 2016 at 7:58:46 AM permalink
Quote: MathExtremist

And it's official, DEQ has been sold:

http://www.prnewswire.com/news-releases/scientific-games-announces-definitive-agreement-to-acquire-deq-systems-300320565.html



Funny, I had asked someone the other day if they thought this was going to happen soon... It was inevitable.
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DJTeddyBear
DJTeddyBear
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August 31st, 2016 at 7:58:48 AM permalink
In case anyone lost track, Scientific Gaming is the parent company of ShuffleMaster and Bally Gaming.
Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? Note that the same could be said for Religion. I.E. Religion is nothing more than organized superstition.
SM777
SM777
Joined: Apr 8, 2016
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August 31st, 2016 at 9:23:11 AM permalink
Interesting. Who would've thunk the table games space would look different by the end of 2016......

I wonder what the next change will be.
beachbumbabs
Administrator
beachbumbabs
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August 31st, 2016 at 9:32:03 AM permalink
Quote: SM777

Interesting. Who would've thunk the table games space would look different by the end of 2016......

I wonder what the next change will be.



Well, you would've thunk it, for one. ;)

I don't think this is good news for independents. We need more competition in distribution, not less, so there's more demand for fresh content.

I could be wrong. This may be a good thing for those under the DEQ umbrella. Guess we'll all see.
"If the house lost every hand, they wouldn't deal the game."
SOOPOO
SOOPOO
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August 31st, 2016 at 9:39:45 AM permalink
They offered double what it was trading for, which is good for us shareholders. It says they will be paying 38 Canadian cents per share. I assume my brokerage account magically converts that to US dollars?
SAMIAM
SAMIAM
Joined: Aug 4, 2016
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August 31st, 2016 at 10:15:08 AM permalink
The 800 lb gorilla in the table game room has just added more weight. Not saying that's a bad thing, if they are pushing your product!! But if not,your will definitely need Brent's determination and drive !
mrsuit31
mrsuit31
Joined: May 29, 2010
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August 31st, 2016 at 11:18:18 AM permalink
Quote: SAMIAM

The 800 lb gorilla in the table game room has just added more weight. Not saying that's a bad thing, if they are pushing your product!! But if not,your will definitely need Brent's determination and drive !



I appreciate the shout out Sam.

I do have to agree on the product statement. This will further dilute the focus on their non bestselling games. Also, since DEQ has some successful games, I'd also assume they will focus on getting more EZ installs than to push stagnant games in their portfolio (DEQ's that is)
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Ayecarumba
Ayecarumba
Joined: Nov 17, 2009
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August 31st, 2016 at 2:26:38 PM permalink
Quote: mrsuit31

I appreciate the shout out Sam.

I do have to agree on the product statement. This will further dilute the focus on their non bestselling games. Also, since DEQ has some successful games, I'd also assume they will focus on getting more EZ installs than to push stagnant games in their portfolio (DEQ's that is)



Would Table Games Managers want the vast majority of the machines and tables on their floors to come from the same provider? If lower prices are offered to 100% users, I can see the independents getting squeezed out pretty quickly. However, by going with a single provider, managers lose the ability to pit one provider against the other. Hmmm...
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SAMIAM
SAMIAM
Joined: Aug 4, 2016
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August 31st, 2016 at 4:23:55 PM permalink
I would think most Table Game Managers would like one contact for troubles, training, etc. If a game's appeal is a close call, they will go with the big guy. Plus when a game flops, they call always fall back on " Well, SHFL said it was really successful in other regions " Lot easier to say to the Casino Manager than " Well, this guy named Brent was sure it would work here "

If you dont think casino's are not political, well , never mind. Just 1 moderator one here still is not sure why he was fired.

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