Alliance buying N.J. casino supplier

Thursday, Dec. 20, 2001 | 11:17 a.m.

A subsidiary of Las Vegas-based Alliance Gaming Corp. is acquiring a New Jersey-based casino software company as part of a deal between two other companies.

All the stock of Advanced Casino Systems Corp. (ACSC), a subsidiary of Greate Bay Casino Corp., both based in Egg Harbor Township, N.J., is being acquired by Alliance's Bally Gaming and Systems subsidiary for $14.6 million.

The sale is part of another deal between Greate Bay and Hollywood Casino Corp., Dallas, which operates casinos in Illinois, Mississippi and Louisiana. Greate Bay has agreed to sell ACSC to Alliance to pay a debt to Hollywood.

The deal is expected to close late in the first quarter of 2002.

Robert Saxton, senior vice president and chief financial officer of Alliance, today said the companies would merge offices, keeping ACSC's New Jersey office open and combining operations in Mississippi, California and Las Vegas.

ACSC has about 100 employees and operates small offices in Las Vegas; Biloxi, Miss.; and Palm Springs, Calif., in addition to its New Jersey headquarters. Alliance has offices in Atlantic City; Gulfport, Miss.; and Temecula, Calif. The corporate headquarters will be in Las Vegas.

Saxton said the company is still assessing whether it will lay off employees when the company is acquired, since most of ACSC's offices are small.

"It's a very synergistic fit for us," Saxton said of the deal, which will give Alliance access to new technology and ACSC's client list.

ACSC's Las Vegas customers include the Aladdin, Caesars Palace, the Riviera, the Venetian and the Reserve (Fiesta Henderson) hotel-casinos.

Saxton said while the sales price has been estimated at $14.6 million, the final purchase price may be less when it is adjusted based on the amount of working capital the company has at the time of closing.