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| | | | A-1 | | | |
| | | | B-1 | | | |
| | | | C-1 | | |
Date Announced
|
| |
Acquirer
|
| |
Target
|
| |
EV/TTM
Adjusted EBITDA Multiple |
|
February 2016 | | | Novomatic | | | Ainsworth | | |
10.3x
|
|
November 2015 | | | Ainsworth | | | Nova Tech | | |
8.5x
|
|
March 2015 | | | Apollo | | | Cadillac Jack | | |
8.8x
|
|
September 2014 | | | Global Cash Access | | | Multimedia Games | | |
9.2x
|
|
August 2014 | | | Scientific Games | | | Bally | | |
12.1x
|
|
July 2014 | | | GTECH | | |
International Game Technology
|
| |
8.6x
|
|
July 2014 | | | Aristocrat Leisure | | | Video Gaming Technologies | | |
8.2x
|
|
July 2013 | | | Bally Technologies | | | SHFL Entertainment | | |
14.3x
|
|
January 2013 | | | Scientific Games | | | WMS Industries | | |
6.2x
|
|
September 2012 | | | Amaya Gaming Group | | | Cadillac Jack | | |
4.7x
|
|
May 2010 | | | Vitruvian Partners | | | Inspired Gaming Group | | |
5.6x
|
|
January 2006 | | | Scientific Games | | | Global Draw | | |
5.4x
|
|
January 2006 | | | Lottomatica Group | | |
GTECH Holdings Corporation
|
| |
9.3x
|
|
November 2005 | | | Shuffle Master | | | Stargames Party | | |
12.4x
|
|
December 2004 | | |
GTECH Holdings Corporation
|
| | Atronic Americas | | |
8.0x
|
|
February 2004 | | | Jarden | | | USPC | | |
7.0x
|
|
November 2003 | | |
GTECH Holdings Corporation
|
| | Spielo Manufacturing | | |
5.4x
|
|
July 2001 | | |
International Game Technology
|
| | Anchor Gaming | | |
7.9x
|
|
| | | | | | Median | | |
8.3x
|
|
| | | | | | 25th Percentile | | |
6.3x
|
|
| | | | | | 75th percentile | | |
9.2x
|
|
Comparable Public Company Analysis
|
| |
Range
|
| |
Implied
Price Per Share(1) |
|
EV/LTM EBITDA (11/23/18)(3)
|
| |
6.4x – 8.7x
|
| |
$11.01 – $14.19
|
|
EV/2018E EBITDA(3)
|
| |
6.4x – 8.5x
|
| |
$10.28 – $13.07
|
|
EV/2019E EBITDA
|
| |
6.1x – 7.7x
|
| |
$9.75 – $11.84
|
|
P/LTM Earnings
|
| |
19.1x – 21.0x
|
| |
$11.53 – $12.66
|
|
P/2018E Earnings(3)
|
| |
13.9x – 22.2x
|
| |
$7.48 – $11.95
|
|
P/2019E Earnings
|
| |
10.8x – 29.0x
|
| |
$5.74 – $15.37
|
|
Premiums Paid Analysis
|
| |
Range
|
| |
Implied
Price Per Share(1) |
|
Small Cap – 1 Day
|
| |
15.6% – 44.3%
|
| |
$9.36 – $11.69
|
|
Small Cap – 14 Day
|
| |
20.1% – 50.4%
|
| |
$9.72 – $12.18
|
|
Small Cap – 30 Day
|
| |
18.8% – 49.9%
|
| |
$9.62 – $12.14
|
|
Casino/Gaming – 1 Day
|
| |
5.8% – 28.9%
|
| |
$8.57 – $10.44
|
|
Casino/Gaming – 14 Day
|
| |
6.1% – 36.8%
|
| |
$8.60 – $11.08
|
|
Casino/Gaming – 30 Day
|
| |
6.9% – 40.1%
|
| |
$8.66 – $11.35
|
|
CGEM – 1 Day
|
| |
7.0% – 28.1%
|
| |
$8.67 – $10.37
|
|
CGEM – 14 Day
|
| |
17.6% – 34.9%
|
| |
$9.52 – $10.92
|
|
CGEM – 30 Day
|
| |
25.8% – 47.1%
|
| |
$10.19 – $11.91
|
|
Name
|
| |
Total Options
Outstanding as of December 28, 2018 |
| |
Cash-Out Payment
for Options ($) |
| ||||||
Executive Officers | | | | | | | | | | | | | |
Alain Thieffry
|
| | | | 35,000 | | | | | $ | 197,155 | | |
Directors | | | | | | | | | | | | | |
Martin A. Berkowitz
|
| | | | 48,000 | | | | | $ | 257,400 | | |
Eric P. Endy
|
| | | | 19,500 | | | | | $ | 95,660 | | |
Charles R. Henry
|
| | | | 35,000 | | | | | $ | 198,433 | | |
Robert J. Kelly
|
| | | | 64,250 | | | | | $ | 353,085 | | |
Jean-Francois Lendais
|
| | | | 28,500 | | | | | $ | 142,625 | | |
| | |
Fiscal Year Ending December 31,
|
| | | | | | | |||||||||||||||||||||||||||||||||
($ in millions)
|
| |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| | | | | | | ||||||||||||||||||||||||
Total Revenue
|
| | | $ | 86,000 | | | | | $ | 81,745 | | | | | $ | 81,745 | | | | | $ | 81,745 | | | | | | | | | ||||||||||||
Total Gross Profit
|
| | | $ | 25,800 | | | | | $ | 23,706 | | | | | $ | 23,706 | | | | | $ | 23,706 | | | | | | | | | ||||||||||||
Total Operating Income
|
| | | $ | 6,100 | | | | | $ | 5,706 | | | | | | 5,346 | | | | | $ | 4,979 | | | | | | | | | ||||||||||||
Net Income
|
| | | $ | 4,350 | | | | | $ | 4,279 | | | | | $ | 4,009 | | | | | $ | 3,734 | | | | | | | | | ||||||||||||
Adjusted EBITDA Calculation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Net Income from Continuing Operations
|
| | | $ | 6,100 | | | | | $ | 4,279 | | | | | $ | 4,009 | | | | | $ | 3,734 | | | | | | | | | ||||||||||||
Income Tax Expense (Benefit)
|
| | | $ | 1,450 | | | | | $ | 1,426 | | | | | $ | 1,336 | | | | | $ | 1,245 | | | | | | | | | ||||||||||||
Depreciation and Amortization
|
| | | $ | 4,791 | | | | | $ | 4,811 | | | | | $ | 4,811 | | | | | $ | 4,811 | | | | | | | | | ||||||||||||
Adjusted EBITDA
|
| | | $ | 10,624 | | | | | $ | 10,499 | | | | | $ | 10,139 | | | | | $ | 9,772 | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Dividends Declared
|
| |||||||||
| | |
Common Stock
|
| |
Regular
Dividends |
| |
Special
Dividends |
| |||||||||||||||
| | |
High
|
| |
Low
|
| ||||||||||||||||||
Fiscal Year Ending December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter (until [•])
|
| | | $ | [•] | | | | | $ | [•] | | | | | | [•] | | | | | | [•] | | |
Fiscal Year Ended December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 11.45 | | | | | $ | 9.20 | | | | | | — | | | | | | — | | |
Second Quarter
|
| | | $ | 9.98 | | | | | $ | 8.18 | | | | | | — | | | | | | — | | |
Third Quarter
|
| | | $ | 9.49 | | | | | $ | 8.02 | | | | | | — | | | | | | — | | |
Fourth Quarter
|
| | | $ | 13.44 | | | | | $ | 7.69 | | | | | | — | | | | | $ | 0.12 | | |
Fiscal Year Ended December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 12.00 | | | | | $ | 9.66 | | | | | | — | | | | | | — | | |
Second Quarter
|
| | | $ | 12.50 | | | | | $ | 9.13 | | | | | | — | | | | | | — | | |
Third Quarter
|
| | | $ | 12.12 | | | | | $ | 9.65 | | | | | | — | | | | | | — | | |
Fourth Quarter
|
| | | $ | 11.50 | | | | | $ | 10.35 | | | | | | — | | | | | $ | 0.12 | | |
Fiscal Year Ended December 31, 2016 | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 10.33 | | | | | $ | 8.51 | | | | | | — | | | | | | — | | |
Second Quarter
|
| | | $ | 9.98 | | | | | $ | 8.55 | | | | | | — | | | | | | — | | |
Third Quarter
|
| | | $ | 12.34 | | | | | $ | 9.12 | | | | | | — | | | | | | — | | |
Fourth Quarter
|
| | | $ | 11.95 | | | | | $ | 10.27 | | | | | | — | | | | | $ | 0.12 | | |
Fiscal Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 12.49 | | | | | $ | 8.00 | | | | | | — | | | | | | — | | |
Second Quarter
|
| | | $ | 13.40 | | | | | $ | 9.45 | | | | | | — | | | | | | — | | |
Third Quarter
|
| | | $ | 11.39 | | | | | $ | 9.50 | | | | | | — | | | | | | — | | |
Fourth Quarter
|
| | | $ | 10.31 | | | | | $ | 8.08 | | | | | | — | | | | | | — | | |
| | |
Shares of Common Stock
|
| ||||||||||||||||||||||||
Name of Beneficial Owner
|
| |
Ownership
|
| |
Options
Exercisable Within 60 Days |
| |
Beneficial
Ownership(1) |
| |
Percent of
Class(2) |
| | ||||||||||||||
Executive Officers, Directors and Director Nominees: | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Eric P. Endy
|
| | | | 168,707 | | | | | | 19,500 | | | | | | 188,207(3) | | | | | | 2.33% | | | | ||
Gregory S. Gronau
|
| | | | 1,200 | | | | | | 149,300 | | | | | | 150,500(10) | | | | | | 1.86% | | | | ||
Robert J. Kelly
|
| | | | — | | | | | | 57,750 | | | | | | 57,750 | | | | | | * | | | | ||
Charles R. Henry
|
| | | | — | | | | | | 31,500 | | | | | | 31,500 | | | | | | * | | | | ||
Martin A. Berkowitz
|
| | | | — | | | | | | 46,000 | | | | | | 46,000 | | | | | | * | | | | ||
Alain Thieffry
|
| | | | 12,500 | | | | | | 35,000 | | | | | | 47,500(4) | | | | | | * | | | | ||
Jean-Francois Lendais
|
| | | | 1 | | | | | | 25,000 | | | | | | 25,001(5) | | | | | | * | | | | ||
All executive officers, current directors and director nominees as a group
|
| | | | 182,408 | | | | | | 364,050 | | | | | | 546,458 | | | | | | 6.76% | | | | ||
5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Elisabeth Carretté
|
| | | | 4,068,226 | | | | | | — | | | | | | 4,068,226(6) | | | | | | 50.31% | | | | ||
VN Capital Management, LLC
|
| | | | 789,310 | | | | | | — | | | | | | 789,310(7) | | | | | | 9.76% | | | | ||
James T. Vanasek
|
| | | | | | | | | | | | | | | | | | | | | | | | | | ||
Patrick Donnell Noone
|
| | | | | | | | | | | | | | | | | | | | | | | | | | ||
Gerard P. Charlier
|
| | | | 506,902 | | | | | | — | | | | | | 506,902(8) | | | | | | 6.27% | | | | ||
M.I.3 S.A.
|
| | | | 732,612 | | | | | | 732,612(9) | | | | | | | | | | | | 9.06% | | | |
|
Section 1
|
| | | | ||||||
|
MERGER TRANSACTION
|
| | | | ||||||
| | | | | A-5 | | | | |||
| | | | | A-6 | | | | |||
| | | | | A-6 | | | | |||
| | | | | A-6 | | | | |||
| | | | | A-7 | | | | |||
| | | | | A-7 | | | | |||
| | | | | A-9 | | | | |||
| | | | | A-10 | | | | |||
|
Section 2
|
| | | | ||||||
|
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
|
| | | | ||||||
| | | | | A-10 | | | | |||
| | | | | A-11 | | | | |||
| | | | | A-11 | | | | |||
| | | | | A-12 | | | | |||
| | | | | A-13 | | | | |||
| | | | | A-13 | | | | |||
| | | | | A-13 | | | | |||
| | | | | A-14 | | | | |||
| | | | | A-16 | | | | |||
| | | | | A-18 | | | | |||
| | | | | A-18 | | | | |||
| | | | | A-18 | | | | |||
| | | | | A-19 | | | | |||
| | | | | A-19 | | | | |||
| | | | | A-19 | | | | |||
| | | | | A-21 | | | | |||
| | | | | A-23 | | | | |||
| | | | | A-24 | | | | |||
| | | | | A-24 | | | | |||
| | | | | A-24 | | | | |||
| | | | | A-24 | | | | |||
| | | | | A-25 | | | | |||
| | | | | A-25 | | | | |||
| | | | | A-25 | | | | |||
| | | | | A-25 | | | | |||
| | | | | A-25 | | | | |||
| | | | | A-25 | | | | |||
| | | | | A-26 | | | |
|
Section 3
|
| | | | ||||||
|
REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
|
| | | | ||||||
| | | | | A-26 | | | | |||
| | | | | A-26 | | | | |||
| | | | | A-26 | | | | |||
| | | | | A-26 | | | | |||
| | | | | A-27 | | | | |||
| | | | | A-27 | | | | |||
| | | | | A-27 | | | | |||
| | | | | A-27 | | | | |||
| | | | | A-27 | | | | |||
| | | | | A-28 | | | | |||
| | | | | A-28 | | | | |||
| | | | | A-28 | | | | |||
|
Section 4
|
| | | | ||||||
|
CERTAIN COVENANTS OF THE COMPANY
|
| | | | ||||||
| | | | | A-28 | | | | |||
| | | | | A-29 | | | | |||
| | | | | A-32 | | | | |||
| | | | | A-34 | | | | |||
|
Section 5
|
| | | | ||||||
|
ADDITIONAL COVENANTS OF THE PARTIES
|
| | | | ||||||
| | | | | A-34 | | | | |||
| | | | | A-36 | | | | |||
| | | | | A-37 | | | | |||
| | | | | A-39 | | | | |||
| | | | | A-39 | | | | |||
| | | | | A-40 | | | | |||
| | | | | A-41 | | | | |||
| | | | | A-41 | | | | |||
| | | | | A-41 | | | | |||
| | | | | A-41 | | | | |||
| | | | | A-41 | | | | |||
| | | | | A-42 | | | | |||
| | | | | A-42 | | | | |||
| | | | | A-43 | | | |
|
Section 6
|
| | | | ||||||
|
CONDITIONS PRECEDENT TO THE MERGER
|
| | | | ||||||
| | | | | A-44 | | | | |||
| | | | | A-44 | | | | |||
| | | | | A-45 | | | | |||
| | | | | A-45 | | | | |||
|
Section 7
|
| | | | ||||||
|
TERMINATION
|
| | | | ||||||
| | | | | A-45 | | | | |||
| | | | | A-46 | | | | |||
| | | | | A-47 | | | | |||
|
Section 8
|
| | | | ||||||
|
MISCELLANEOUS PROVISIONS
|
| | | | ||||||
| | | | | A-49 | | | | |||
| | | | | A-49 | | | | |||
| | | | | A-49 | | | | |||
| | | | | A-49 | | | | |||
| | | | | A-49 | | | | |||
| | | | | A-50 | | | | |||
| | | | | A-50 | | | | |||
| | | | | A-50 | | | | |||
| | | | | A-50 | | | | |||
| | | | | A-51 | | | | |||
| | | | | A-52 | | | | |||
| | | | | A-52 | | | | |||
| | | | | A-52 | | | |
Schedule
|
| |
Description
|
|
1.6(a) | | | Paying Agent | |
1.6(e) | | | Outstanding Company Options | |
2.1(b)(i) | | | Company Investment Entities | |
2.1(b)(ii) | | | Company Subsidiaries | |
2.3(d) | | | Company Options and Company SARs | |
2.7(a) | | | Owned Real Property | |
2.7(b) | | | Leased Real Property | |
2.8(a)(i) | | | Company-Owned Registered IP | |
2.8(a)(ii) | | | Company-Licensed Registered IP | |
2.8(h) | | | Data Security | |
2.8(j)(i) | | | Open Source Materials | |
2.8(j)(ii) | | | Exceptions to Open Source Incorporation | |
2.9(a) | | | Material Contracts | |
2.9(b) | | | Exceptions to Availability of Material Contracts | |
2.12 | | | Compliance with Gaming Laws | |
2.14(b) | | | Company Gaming Approvals | |
2.15(c) | | | Tax Matters | |
2.16(b) | | | Collective Bargaining Agreements | |
2.16(c) | | | Pending or Threatened Legal Proceedings | |
2.16(e) | | | Material Employee Plans | |
2.16(f) | | | Special Employee Benefits | |
2.16(j) | | | Transaction Bonuses | |
2.19(a) | | | Legal Proceedings | |
2.19(b) | | | Orders | |
2.22(a) | | | Non-Contravention; Consents | |
4.1(b)(i) | | | Properties Subject to Sampling | |
4.2 | | | Operation of the Acquired Companies’ Business | |
4.2(b)(i)(A) | | | Dividends | |
4.2(b)(ix) | | | Capital Expenditures | |
5.5(a) | | | Indemnification of Officers and Directors | |
6.2(e) | | | Required Gaming Approvals | |
6.2(g) | | | Required Consents | |
Name and Address
|
| |
Number of Shares
|
|
HOLDING WILSON, S.A. 3, Avenue du Président Wilson Paris 75116 France Attention: Alain Thieffry Email: amthieff@gmail.com |
| | 4,048,124 Shares | |
ELISABETH CARRETTÉ 3, Avenue du Président Wilson Paris 75116 France |
| | 20,102 Shares | |
| 1. | | | The approval of the merger agreement, thereby approving the transactions contemplated thereby, including the merger. | | |
FOR
☐ |
| |
AGAINST
☐ |
| |
ABSTAIN
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| 2. | | | The proposal to approve the adjournment of the special meeting if necessary or appropriate in the view of the GPIC board of directors to solicit additional proxies if there are not sufficient votes at the time of the special meeting to approve the merger agreement. | | |
FOR
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AGAINST
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ABSTAIN
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| MARK “X” HERE IF YOU PLAN TO ATTEND THE MEETING. | | | ☐ | |
| To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. | | | ☐ | |
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Signature of
Stockholder
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Date:
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Signature of
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Date
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