GTECH Holdings Corporation today announced that it has completed the previously-announced acquisition of Ohio-based Interlott Technologies, Inc, a leading provider of instant ticket vending machines (ITVMs) for the lottery industry worldwide. The acquisition was approved at a special meeting of Interlott shareholders on Wednesday, September 17, 2003. The common stock of Interlott ceased trading today, September 18, 2003, and will no longer be listed on the American Stock Exchange.
Interlott shareholders were given the opportunity to elect to receive either $9.00 in cash or a number of GTECH shares having a value of $9.00, or a combination of both, subject to adjustment so that the aggregate consideration paid by GTECH is 51.5 percent in GTECH stock and 48.5 percent in cash. The final exchange ratio of 0.2156 shares of GTECH common stock for every share of Interlott common stock was determined based on the average closing price of $41.74 for GTECH's common stock, for the 20 trading day period commencing August 14, 2003 through September 11, 2003. Interlott had approximately 6.5 million shares of common stock outstanding, excluding stock options, at closing.
GTECH President and CEO W. Bruce Turner said, "By combining GTECH's online technology expertise and Interlott's proven and industry-leading ITVM technology, we are able to deliver not only new lottery products for consumers, but also new capabilities and services for retailers and lottery customers. Online automation will also make it possible for GTECH customers to combine management reporting of both online and instant-ticket-vending activity."
"The online ITVM concept is part of a larger trend toward self-service in retail," continued Mr. Turner. "Consumers have demonstrated a preference for self-service, and retailers have employed self-service strategies to increase sales without having to increase staffing requirements. GTECH has several initiatives underway to bring the self-service functionality to the lottery market. The Interlott acquisition will enhance and accelerate those efforts."