News

Equitex reviewing bid for casino cash access business

September 18, 2003

LAS VEGAS - iGames Entertainment Inc. (OTC Bulletin Board: IGMS), a developer and manufacturer of products such as slot machine security devices and table games for the gaming industry, and Money Centers of America, Inc., a provider of money access services including ATMs to the gaming industry, say they intend to buy the Chex Services, Inc. unit of Equitex Inc. (Nasdaq: EQTX), in the fourth quarter.

The companies' unsolicited offer is currently being reviewed by a third-party financial advisor.

According to a Reuters report, Equitex agreed in July to sell Chex Services, a provider of cash access services to the gaming industry, to ATM provider Cash Systems Inc. for about $40.5 million.

(See related story Cash Systems acquires Chex Services in bid to broaden casino services)

"We have a definitive agreement with Cash Systems and we're moving forward with that agreement unless it's decided this new competing offer is a better offer, said Thomas Olson, a Equitex spokesman. "But we have not made a determination in that regard at this point."

Olson said Equitex would make a decision after receiving the financial advisor's report.

Jeremy Stein, iGames Entertainment's chief executive, said in a news release, "Because we are confident that we can close this transaction in a timely manner, we have begun to execute our plans to integrate Chex into our business model and will immediately benefit from the combined product lines."

According to Reuters, iGames Entertainment and Money Centers of America agreed to merge earlier this month.