Global Leveraged Capital has acquired Video King from Nogales Investors and Contrarian Capital. No financial terms were disclosed. G.C. Andersen Partners LLC served as advisor on the transaction. Headquartered in Omaha, Nebraska, Video King is a provider of electronic gaming systems and bingo hall equipment.
NEW YORK and LOS ANGELES, June 11, 2015 /PRNewswire/ — G.C. Andersen Partners, LLC, (“Andersen”) an investment banking and advisory firm known for its creativity, problem-solving capabilities and depth of experience, has announced the sale of VKGS LLC (“Video King”) to Global Leveraged Capital (“GLC”).
In announcing the transaction, Andersen Partner, Jay C. Sherwood said, “As a result of our unique and extensive expertise in the gaming industry, combined with our strong relationships with financial and strategic buyers, we were able achieve a successful outcome for our client against the backdrop of a dynamic time in the gaming equipment industry. The advantage Andersen provided in its ability to understand, appreciate, and effectively demonstrate the full value of Video King resulted in a very favorable liquidity event for the sellers, Nogales Investors and Contrarian Capital, while representing an attractive new platform investment for GLC. In addition, the existing senior management of Video King has an outstanding new partner in GLC to facilitate and realize the future growth opportunities for Video King given GLC’s expertise, relationships, and other investments in the gaming industry.”
Keller Norris, Principal at Nogales Investors, added, “We are very pleased with the outcome of this transaction. Jay Sherwood and the team at G.C. Andersen Partners achieved a successful exit for us and the management team at Video King has a strong, capable new owner in GLC going forward.”
Andersen Founder and Managing Partner, Chris Andersen, added, “We have consummated four gaming industry engagements ranging from Las Vegas casinos to Video King’s electronic bingo equipment within the last 12 months. Our firm’s knowledge of the gaming industry is unparalleled with several partners with various lengths of and segment experience, including our preeminent gaming industry investment banker who alone has spent 20 years exclusively serving the industry. This in-depth experience in every aspect of the gaming industry enables Andersen to provide bespoke client counselling and deal execution which our clients tell us is rare in today’s homogenized banking industry.”
The gaming industry has experienced a challenging period in recent years, primarily due to decreased traffic at casinos in the U.S. and Canada that has in turn led to declining gaming equipment sales. Andersen needed to differentiate and effectively market Video King against this challenging macro-economic environment. Through its in depth knowledge and relationships throughout the gaming industry, Andersen focused on the most logical strategic and financial buyers and effectively communicated Video King’s growth opportunities and differentiated business model of leasing vs. selling its electronic bingo gaming devices. By leasing its gaming equipment, Video King maximizes the useful life and ongoing income generation from those deployed units as well as having capital assets which are mobile with the ability to move those units from customer to customer as required. In addition, Video King’s business model results in reducing the higher capital expenditures and working capital levels typically associated with other providers of gaming equipment that use the traditional sales model.
About Video King
Video King is one of the world’s largest providers of electronic bingo gaming devices and systems, game designs, and bingo hall equipment. The Company specializes in the design, manufacturing, assembly, and marketing of a complete line of gaming devices that include color handsets, portable gaming tablets, fixed-base gaming devices and monochrome handsets, as well as an array of innovative computer games and a comprehensive bingo management system. Additionally, Video King sells bingo hall equipment, including blowers, flashboards, and assorted alternative bingo games. Customers include charitable organizations, Native American casinos, luxury cruise liners, and military establishments around the world. Since its inception, the Company has been technology focused and at the forefront of research and development, innovation, and new product introductions in the electronic bingo industry.
About G.C Andersen Partners, LLC
Founded by G. Chris Andersen in 1996, G.C. Andersen Partners, LLC is an investment banking and advisory firm best known for creativity, its problem solving capabilities as well as the unusual depth of experience of its partners. The firm advises both private and publicly-held company clients worldwide on mergers and acquisitions, capital raising and restructuring. Please visit www.andersenllc.com.