- THE ACQUISITION FURTHERS COMPANY STRATEGY OF EXPANDING SPECTRA'S PRODUCTS BEYOND PHYSICAL BANKNOTES SECURITY TO SECURE TRANSACTIONS SOFTWARE PRODUCTS FOR GAMING, BANKING, AND CENTRAL BANK APPLICATIONS
PROVIDENCE, Rhode Island, June 6, 2012 /PRNewswire/ -- Spectra Systems announced that it has acquired with effect from June 1, certain assets from ESI Integrity, in the gaming software security industry. Spectra will acquire all of the assets of ESI Integrity, including its proprietary source codes, multi-year contracts and long-standing customer relationships.
The ESI Business, which is headquartered in Vancouver, Canada, is in the gaming software security industry and has a 22 percent worldwide market share of the secure Internal Control Systems (ICS) segment primarily with international lotteries, including Norway, Greece, South Africa, Russia, Korea and Taiwan.
ICS is a secure, high speed data platform which plays a critical independent security role in auditing online lottery and many other gaming systems including pari-mutuel platforms. ICS provides tools for fraud detection, money laundering, match fixing, and statistical analysis and has many existing parallel applications used by the securities exchange industry. The ESI Business ICS contracts are multi-year and its independent services are used to verify the accuracy of transactions logged by providers of lottery and gaming services worldwide, including INTRALOT, SCIENTIFIC GAMES and GTECH.
"The expansion of Spectra's secure transactions products beyond physical banknotes to secure software products for gaming will allow us to utilize our blue-chip credentials with central banks to gain market share for the ICS and other software development throughout the gaming world," said Nabil Lawandy, CEO of Spectra Systems Corporation. "The board considers this to be an exciting acquisition for Spectra which will make a significant contribution to our future profits, both directly and through the elimination of duplicated costs. In addition, we believe that we will be able to expand on our decade long relationships with central banks to offer our existing customers as well as commercial banks and the securities industry new software based products providing real time analysis of banknote and other transaction data aimed at increased visibility leading to higher security, efficiencies and cost savings."
"With governments seeking to raise more revenues from their constituents, we believe that this business area will continue to grow and provide additional stable security-based revenue for the foreseeable future," Lawandy said.
ESI's Integrity software will play a role in Spectra's new Secure Transactions Group to be headed by Scott Tillotson. Tillotson has more than 20 years of technology experience working for Spectra, GTECH and IBM and combines both a deep understanding of the lottery and gaming industry as well as IT product and banknote security.
"We will continue our service to our valued ICS customers in a seamless fashion," said Alan Ahac, managing director of Spectra Integrity. "The ESI team is delighted that it can leverage its gaming security capability to be part of one of the companies that brings the highest level of integrity and security to the gaming and banking markets."
The online gaming market represents one of the fastest growing segments of the industry. Estimates put the size of the global online gaming market to hit $30 billion by 2012 and some of the biggest potential markets—such as the United States, China, and Japan still prohibit many forms of lottery and gaming over the Internet but this may soon change. Spectra believes this market is poised for increasing demand for independent security and audit software to support Internet-based gaming in regulated markets in Europe, Asia, Latin America and now the United States.
For more information, visit at: www.spsy.com
SOURCE Spectra Systems Corporation