AG&E Holdings Acquires Advanced Gaming Associates For Undisclosed Amount

AG&E Holdings, Inc.

disclosed, in a statement, that it struck a definitive deal to buy Advanced Gaming Associates LLC through a merger. According to the company, consideration would be a mix of share and a five-year note. Once the transaction is completed, Advanced Gaming will represent 31% of the outstanding shares in the new company. AG&E Holdings said that Advanced Gaming generated about $6.7 million revenue in the last year, and the two companies are expected to generate about $17 million revenue in the first year of their operations. The company's Chairman of the Special Committee of the Board, Michael Levin, said "We believe that the merger of these two established companies will form the foundation of the leading parts and services provider for the casino and gaming market in the United States, and even globally". Before the closing of the deal, AGE plans to make a cash distribution to its current shareholders. Accordingly, the amount of the distribution would be $0.05 - $0.11 per share. The integrated AGE and AGA businesses would operate under the single name "AG&E Holdings Inc" once the transaction was completed. The two parties expect that AGE shares to be continued to be listed on the NYSE Market exchange under the ticker symbol of "WGA". On Tuesday, the stock rose 6.15%.