Boyd Gaming Corporation has announced that its wholly-owned subsidiary, Boyd Interactive Gaming Inc, has entered into a definitive agreement to acquire Pala Interactive LLC and its subsidiaries for total cash consideration of $170m.
Majority owned by the Pala Band of Mission Indians, Pala Interactive is an igaming software and services supplier that provides proprietary real money and social gaming solutions on both a B2B and B2C basis across US and Canadian regulated markets.
Robert Smith, Chairman of the Pala Band of Mission Indians, commented: “Our tribe was at the forefront in creating an online gaming platform. We brought together the best minds in the business to build and ultimately transact, what has become a very successful business.”
Pala Interactive’s technology includes a player account management system, casino, poker, and social casino and poker platforms, as well as a full suite of managed services. The firm currently provides B2B services in eight US states as well as Canada, and it operates B2C offerings in New Jersey and Canada.
“This is the result of a considerable capital investment and lot of hard work by the Pala Tribe and Pala Interactive employees to build a modern-age online gaming platform and business tailored to the North American regulated gaming market,” added Jim Ryan, CEO of Pala Interactive.
“Boyd Gaming’s acquisition of the Pala Interactive business, positions the enterprise for the next growth phase, which includes the development and execution of an iGaming strategy for Boyd Gaming and a continued commitment of investment and development in Pala’s B2B business.”
Subject to customary closing conditions and the receipt of all required regulatory approvals, the transaction is expected to close by Q1 2023 and it will be financed with a combination of cash on hand and the company’s existing credit agreement.
Keith Smith, President and CEO of Boyd Gaming, stated: “The acquisition of Pala Interactive marks the next phase in the ongoing execution of our igaming strategy, providing us full control over the technology, development and customer experience.
“By integrating online casinos with our existing land-based operations, we will be able to further leverage and monetize our expansive customer database and the amenities of our nationwide portfolio of properties, driving growth in both our land-based and igaming operations.”
Smith continued: “Given our nationwide geographic distribution, significant database and established loyalty program, it makes sense for us to pursue a direct approach with our igaming operations. By engaging directly with our guests and having the ability to personalize the customer experience, we are confident in our ability to create a cost-effective and profitable regional igaming business.
“While the acquisition of Pala Interactive supports our igaming strategy, we remain fully committed to our sports-betting partnership with FanDuel, which has allowed us to participate in the nationwide expansion of sports betting. We look forward to welcoming the Pala Interactive team to our Company and building a highly successful online gaming business in the years ahead.”