Passport Technology, Automated Systems Merge to Form Gaming Payments Firm

Passport Technology Inc. and Automated Systems America Inc. are joining forces in what they call an “all-stock merger of equals.” Both provide payment technologies to the gaming industry in the U.S. and globally

Passport Technology, Automated Systems Merge to Form Gaming Payments Firm

On January 19, Passport Technology Inc., a provider of payment technology to the global gaming industry, and Automated Systems America Inc. (ASAI), a provider of gaming payments and related value-added services to U.S. casinos in the United States, announced a definitive agreement to combine in an all-stock merger of equals.

According to the announcement, the transaction “creates the premier payments technology company in the largest and most attractive gaming financial technology markets worldwide.”

Spanning the Globe

Combined, Passport and ASAI provide cutting-edge payments and software solutions throughout the world, including the United States, the United Kingdom, Europe and Canada. The combined company offers state-of-the-art products and services to gaming operators including:

  • Payment transaction processing
  • Cashless automation
  • Regulatory compliance solutions
  • Analytics
  • Loyalty programs
  • Merchant services
  • Bank-sponsored ATM processing

The new company serves more than 3,500 points of interaction across 125 casinos in six countries, settling over $3.1 billion in funds and processing 13.2 million transactions annually.

“Passport has delivered significant and consistent growth since its inception in 2016,” said Scott Dowty, chairman and CEO of Passport. “Combined with ASAI’s U.S. footprint, we will execute upon a proven playbook fueling industry-leading growth across all metrics in the United States and abroad.

“Based in Las Vegas, Passport has patiently awaited the opportunity to enter the United States market, and we’re thrilled to collaborate with an industry visionary in John Steely, CEO of ASAI, and his incredibly impressive and accomplished team,” Dowty continued. “With some of the most sophisticated and forward-thinking global and regional casino operators as customers, we are eager to showcase our solutions and deep pipeline of emerging technologies. As digital payments and cashless transactions gain popularity, we are uniquely positioned to benefit as our strategy will leapfrog antiquated technology leveraging our core infrastructure and strategic partners.”

Steely added, “ASAI has enjoyed tremendous success for 20 years. We are fortunate to have enjoyed long-lasting customer and partner relationships, as well as the very best employees, while delivering best-in-class solutions.

“We have witnessed Passport’s enviable execution internationally over the past five years, and joining forces is truly a scenario of one plus one equals five. With minimal overlap in resources, extensive technical synergies and Passport’s proven business development and sales prowess, we couldn’t foresee a better partner as we take Passport to the next level. ASAI has declined many M&A opportunities over the years, but this compelling opportunity to merge with Passport was unanimously welcomed by ASAI’s Board and unanimously approved by ASAI shareholders. We wholeheartedly believe our customers, partners, and employees—as well as the industry—will benefit from this union.”

Unparalled Opportunity

According to Paul Nielsen, ASAI senior vice president and general manager, “The combination of Passport’s high-growth and high-margin international business with ASAI’s robust product suite, expanding customer base and decades of experience in the United States positions Passport both for significant organic growth as well as accretive M&A opportunities. With an updated and expanded technology stack, profitable operations, a strong balance sheet and a laser focus on growing revenue, we’re imminently poised to unlock value through innovation, consolidation and scale.”

The global gaming industry presents a massive addressable market of more than $200 billion across core, related and emerging verticals. Transformational forces in today’s market—combined with Passport’s breadth and depth of innovation and differentiation—will enable Passport’s sustained exponential growth well over the horizon.

As the market shifts at an accelerated pace to cashless and alternative forms of payment, it presents an unparalleled opportunity for technology disrupters such as Passport. Its cloud-based, highly scalable platforms leverage advanced technologies and can speed entry into emerging markets and verticals with minimal cost.

The combined company partners with casino operators to maximize their gaming revenue by settling funds to casino floors through innovative and secure cash and cashless payment solutions, including:

  • CashStream
  • CashValet
  • CashlessValet
  • QuickCheck
  • POSpod
  • ACMowl
  • Jackpot Pro
  • BankBuilder Pro
  • Exchange Pro

Custom Solutions, Collaborative Approach

The portfolio of solutions also features all-inclusive bank vaulting programs. Passport’s proactive and collaborative product development approach with customers and regulatory authorities provides a unique perspective as Passport delivers custom solutions by customer and jurisdiction. Guardian Pro, Live Cage, Live Office and ActiveData RT are representative of these efforts and a cornerstone of Passport’s commitment to secure and robust customer-focused solutions, cloud-based technologies, social responsibility, and regulatory compliance.

Passport’s proprietary transaction processing platform, DataStream, facilitates ATM, POS, ACH and retail transactions across all business lines, with one of the largest bank-sponsored ATM processors in the United States. With more than 16 years of continuous improvement and thousands of customers, DataStream has earned its place among the nation’s top financial transaction processors.

In addition to reliable and secure ATM processing, DataStream offers a robust and real-time client analytics portal, an innovative mobile portfolio management application, Dynamic Currency Conversion (DCC), and a comprehensive cash vaulting program for both retail and gaming properties. Passport also provides merchant service solutions to casinos and general merchant categories across North America through wholly-owned Paytron Merchant Services. Paytron provides Passport customers with leading merchant payment technology, omni-channel acceptance solutions, a single reporting portal, and consultative support from Passport’s merchant service experts.

Passport’s expansive suite of purpose-built payment and compliance solutions for gaming clearly differentiates Passport from traditional providers while providing one very important single point of support. Passport is positioned for hyper-growth in targeted jurisdictions and verticals where greenfield and competitive opportunities abound.

The transaction remains subject to federal, state, and local licensing approvals in the various jurisdictions where Passport and ASAI operate. The transaction is not subject to financing.

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