* Consolidation across platforms appears to be the new thing in the gaming industry. Not long ago, an Illinois casino proposed buying a Metro East horse racing track. Now this. From a press release…
Penn National Gaming, Inc. (PENN: Nasdaq) (the “Company,” or “Penn National”) announced today that it entered into a definitive agreement to acquire Illinois video gaming terminal (“VGT”) operator Prairie State Gaming (“PSG”) in an all cash transaction. One of the largest VGT route operators in Illinois, PSG’s operations include more than 1,100 terminals across a network of 270 bar and retail gaming establishments throughout the State. For the twelve-months ended June 30, 2015, PSG generated nearly $10 million in EBITDA (earnings before interest, taxes, depreciation and amortization). The transaction, which is expected to be immediately accretive to Penn National upon closing later this quarter, is subject to regulatory and other customary approvals and conditions.
Jay Snowden, Chief Operating Officer of Penn National Gaming, commented, “The planned acquisition of PSG is consistent with our proven long-term strategy for growth through accretive acquisitions. PSG is one of Illinois’ most respected VGT operators, with a strong track record of regulatory compliance and a reputation for reliable around the clock service backed by one of the industry’s most experienced teams. With its strong financial position, PSG has also distinguished itself in the Illinois VGT industry for its ability to quickly roll out new games to customers.