Slot Maker WMS Buys Orion Gaming

...which designs, manufactures and distributes casino-based gaming machines. This deal, which is expected to close this summer, will help WMS move into international markets while boosting its already wide ranging portfolio of gambling machines, such as video poker, while the deal also gives WMS further depth on its development and sales teams that will better understand the nuances of international markets.

In order to buy 100% of Orion, which will operate as a subsidiary, WMS struck a deal with two shareholders in a buyout worth $19 million (EUR 15 million) for all outstanding shares of Orion stock. WMS will split the $19 million in a purchase giving the Orion shareholders half the buyout in cash and half in WMS stock. WMS is also spending $11.5 million (EUR 9 million) as part of the deal to eliminate the company’s debt.

"The addition of Orion Gaming further expands our growth prospects and builds on the success we have achieved in positioning WMS as a worldwide industry leader,” said Brian R. Gamache, President and Chief Executive Officer of WMS Industries. “The acquisition brings to WMS a broad range of strategic benefits and squarely meets our criteria for expanding our international presence, while adding proven product development capacity, intellectual property and new products, including the potential for development of products for the European amusement with prize market. The acquisition also serves as a strong entree into emerging European gaming markets with products and content designed specifically for those markets."
Gamache also believes Orion’s corporate culture and use of technology for game development is akin to WMS’ current business model making this an easy to integrate acquisition.

"Joining WMS will help expand our product development, marketing and distribution capabilities," explained Rik Wanrooij, managing director of Orion Gaming. "We recently implemented new technologies and functionalities in our gaming machines that will expand our customer base. With WMS' recent success with similar initiatives, we believe this transaction makes great sense in accelerating the growth of both entities."

WMS makes games under such titles as Men in Black, Monopoly, You Bet Your Life, Reel ‘Em in Big Bass Bucks and Kahuna Cash. Its newest machine is POWERBALL, a series of themed slots utilizing new and exciting 3x3 matrix technologies with nine Local-Area Progressive jackpots offered on one game and a Wide-Area Progressive jackpot that starts at a million dollars.  Orion Gaming is known for such slot machines as Guns and Vodka, Armada Gold and Dracula.
This announcement seems to have saved WMS from a precipitous stock slide, which has been trending downward for the last six weeks. The stock is trading at around $27.50, is down from its 2006 high of $30.25. The stock has popped up about $1.50 since the acquisition was announced. 

In 2005, sales topped $388 million, for total income after expenses at $21.2 million. Sales also increased an astounding 68% last year.

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