Tabcorp acquires gaming machine developer INTECQ

Australian gaming giant Tabcorp is expanding its non-traditional business through the acquisition of INTECQ Ltd, an electronic gaming machine developer and marketer, local media reports.

The ASX-listed gaming technology group INTECQ was acquired through a A$128 million (US$96.9 million) deal, which Tabcorp says will strengthen its gaming services division and add $20 million to underlying earnings.

INTECQ, formerly known as eBET, has commercial agreements with 1,200 licensed venues which have a network of more than 70,000 electronic gaming machines across Australia.

Tabcorp’s gaming services division provides land-based gaming venues with a range of services, including gaming machines, marketing and loyalty programs, as well as financing for venue refurbishment.

In May, INTECQ reported net profit for the 2016 financial year would be up 27-35 percent compared to last year to A$7.7-8.2 million.

Tabcorp is set to report its 2016 financial year profit on Thursday, with analysts forecasting a net profit of A$182.7 million, up from A$171.3 million recorded in FY15.