Projo Biz Blog

Providence-based GTECH, a unit of Lottomatica, said this morning it has agreed to acquire 90 percent of Gibraltar-based St Enodoc Holdings Limited and its subsidiaries including St Minver Limited, a provider of white label gaming services.

GTECH will pay $43.5 million on a cash and debt free basis at closing, and up to an additional$21.1 million based on the performance of the business in 2008 and 2009.

The acquisition, which is expected to be completed within the current quarter, is subject to regulatory and certain other closing conditions. Ten percent of St Enodoc will remain with Gary Shaw, founder and chairman, until at least 2012, at which point both Shaw and GTECH have the right to cause GTECH to acquire Shaw's shares.

GTECH expects to finance the transaction from existing cash. In its last reported fiscal year ended June 30, 2007, St Enodoc Group had total revenues of approximately $21.3 million.

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