Supplier buys rest of MDI stake

Wednesday, Feb. 27, 2002 | 11:02 a.m.

NEW YORK -- Scientific Games Corp. said Tuesday it plans to acquire the outstanding shares of MDI Entertainment Inc. it doesn't already own for $2.10 a share in stock.

Shares of Scientific Games finished at $9.38 on the Nasdaq Stock Market, up 25 cents, or 2.7 percent.

Scientific Games, which supplies instant tickets, systems and services to lotteries, said Chief Executive and President Steve Saferin will escrow about $1.8 million of the company's stock, subject to release upon the achievement of certain earnings before interest, taxes, depreciation and amortization, or EBITDA targets, by the acquired business over four years.

The deal is subject to certain conditions, including the execution of definitive agreements, due diligence and shareholder approval.

Saferin will continue as CEO and president of MDI, which will be a wholly owned unit of Scientific Games. MDI will operate as an autonomous business unit and will continue to offer its products and services to all lotteries.

MDI designs promotional programs for lotteries, including game design, prize structure, advertising and prize fulfillment.

Shares of MDI, which trade on the over-the-counter Bulletin Board, traded early Tuesday at around $2.11, down 24 cents, or 10.2 percent.