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Trive Capital to acquire Seven Aces in take-private deal

Trive Capital has agreed to the take-private acquisition of Seven Aces, a Toronto-based gaming company.

Trive Capital has agreed to the take-private acquisition of Seven Aces, a Toronto-based gaming company. Earlier this month Seven Aces said the deal values the company at C$178.6 million. The acquisition will require the approval of Seven Aces’ shareholders in July 2020.

PRESS RELEASE

DALLAS, Texas, TORONTO, Ontario, and ATLANTA, Georgia
Trive Capital (“Trive”), the Dallas based private equity firm, is pleased to announce that an affiliate of Trive has entered into a definitive arrangement agreement to acquire all of the issued and outstanding common shares of Seven Aces Limited (TSXV: ACES) (“Seven Aces” or “Aces”), other than those shares owned by Manu K. Sekhri, CEO of Seven Aces. Seven Aces has built a diversified portfolio of world-class gaming operations through its 70% owned subsidiary, Lucky Bucks, LLC (“Lucky Bucks”), the largest route operator of skill-based gaming machines in the State of Georgia. The proposed transaction was previously announced by Seven Aces on June 11, 2020.

Trive previously partnered with the Seven Aces and Lucky Bucks teams in 2016 through a structured capital investment, investing both debt and equity into the business as part of Aces’ initial acquisition of Lucky Bucks. The Trive, Aces and Lucky Bucks teams have a longstanding history of working together, having completed nine acquisitions of coin operated amusement machine (“COAM”) operators and associated portfolios during the period of Trive’s initial investment, increasing scale and growing the footprint of Lucky Bucks within the State of Georgia.

Conner Searcy, Managing Partner of Trive, said: “Trive is thrilled to reinvest alongside Manu and both companies’ management teams, having successfully partnered together in 2016 through our initial investment in Lucky Bucks and subsequent follow-on investments to scale the business. We believe that this transaction is a win-win for the existing shareholders of Seven Aces who will realize near-term liquidity and certainty of value, and for Trive, having the opportunity to partner with an incredibly talented management team for the second time.”

“Our longstanding history with Trive and their deep knowledge of Lucky Bucks makes them an ideal partner to execute on the long-term strategy and vision of the business,” commented Manu K. Sekhri, CEO of Seven Aces. “The Aces and Lucky Bucks management teams are excited to continue to build scale and create value for our stakeholders in a private context alongside a partner we know and trust.”

Shravan Thadani, Managing Director at Trive, added, “The Seven Aces acquisition is an example of our ability to navigate through an uncertain market environment, providing speed and certainty of execution in a take-private context, despite macro volatility. Having been a part of Aces’ and Lucky Bucks’ initial success in 2016, we are excited to support Manu and both teams’ continued efforts in establishing Lucky Bucks as a marquee name in gaming, both organically and acquisitively in the years to come.”

The acquisition will require the approval of Seven Aces’ shareholders at a special meeting expected to take place in July 2020.

About Seven Aces Limited
Seven Aces Limited is a gaming company, with a vision of building a diversified portfolio of world class gaming operations. Seven Aces looks to enhance shareholder value by growing organically and through acquisitions. Currently, Seven Aces is the largest route operator of skill-based gaming machines in the State of Georgia.

About Lucky Bucks
Lucky Bucks is a digital skill-based coin operated amusement machine (COAM) route operator based in and incorporated under the laws of the State of Georgia in the U.S. Lucky Bucks is the holder of a Master License, and its machines are fully licensed and governed by the Georgia Lottery Corporation and offer players a variety of digital skill-based coin-operated amusement machines.

About Trive Capital
Trive Capital is a Dallas, Texas based private equity firm managing approximately US$2 billion in aggregated capital commitments. Trive focuses on investing equity and debt in what it sees as strategically viable middle-market companies with the potential for transformational upside through operational improvement. We seek to maximize returns through a hands-on partnership that calls for identifying and implementing value creation ideas.

The Trive team is comprised of seasoned investment professionals who have been involved in over 100 middle-market transactions representing in excess of $6 billion in revenue across Trive’s targeted industry sectors and situations.