TPG Capital is acquiring slot route operator Accel Entertainment in a transaction that will take Accel public. The deal is being made through TPG Pace, a publicly listed acquisition subsidiary that will become Accel’s listing.
TPG will pay Accel stakeholders $500 million through the reverse merger with the new company trading on the New York Stock Exchange under ACEL. The acquisition should close in the third quarter.
Accel should generate more than $100 million in adjusted EBITDA next year. It’s the largest gaming terminal operator in the U.S. in terms of EBITDA and operates more than 8,000 slots, TPG said. Part of that growth is attributed to Illinois’ gaming expansion, where Accel could add a sixth terminal in about 400 locations.
Accel CEO Andy Rubenstein and his management team will continue to lead the company. Accel Co-Founder Gordon Rubenstein, TPG Pace CEO Karl Peterson, Luminate Capital Founder Hollie Haynes and former Zillow CFO Kathleen Philips will make up the board with Peterson as chairman.
