Yesterday International Game Technology (IGT) announced that it had acquired certain operating assets of Progressive Gaming International Corporation (PGIC). The PGIC operations around the world are to be integrated with IGT offices in Europe, Asia, Australia, Latin America, Canada and the US. Last week PGIC was foreclosed and liquidated after failing to meet a payment deadline for US$17 million.

IGT Executive Vice President of Product Strategy, Rich Schneider said, "We are very excited about the opportunity that this transaction provides to IGT. The PGIC system product line is designed for somewhat different market segments as compared to our current IGT Advantage line. As such, the technology is an ideal complement to our current offering, allowing us to immediately increase our system install base, while providing us with a more complete product offering for future sales opportunities. Further, this gives us the ability to better service the PGIC system install base with our server-based sbX system offering."

Formed in May 1986 (under the prior company name, Mikohn Gaming), PGIC transitioned from a manufacturer of signs and slot machines to a dynamic, innovative, systems-centric developer of casino management and progressive systems. In December 2005 the company completed the acquisition of the EndX CasinoLink slot management module widely used in UK casinos. PGIC products are installed in over 1,000 casinos worldwide.

In November last year the company reported third quarter financial results, stating: ‘The decline in systems revenues reflects a deferral of a significant number of installations expected to occur in the third quarter of 2008 as a result of delays in casino expansions and more cautious capital spending by customers.’

It seems that the downward turn in the economy has happened too quickly and too deeply for PGIC to ‘proactively address a challenging operating environment and several other factors that are impacting our financial results.’ However, the past success of PGIC systems in international markets should be a good foundation for IGT to build on with its new acquisition. (E-01.21.09)

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