The publicly traded provider of online lottery services to governments says it spent $90-million to develop a 265,000-sf headquarters building at Nine Waterplace Park in the Capital Center District of Downtown Providence and a 250,000-sf manufacturing building within Warwick Industrial Park.
Regarding its current headquarters, the company said it intends to enter into a purchase and sale agreement with a subsidiary of Amgen Inc., a global biotechnology company that has adjacent operations. A purchase price has not been announced.
As part of the relocation package, Gtech is purchasing for $12.5 million the right to be the exclusive provider of online, instant-ticket, and video lottery central systems and services for the Rhode Island Lottery for 20 years. Gtech also will provide the state with an additional 1,000 video lottery terminals and plans to invest approximately $140 million in new systems, software, and services over the life of the contract.
To seal the deal, Governor Donald Carcieri on Wednesday signed a Memorandum of Understanding on behalf of the State of Rhode Island in which the State committed to passing legislation authorizing the Rhode Island Lottery Commission to enter into the contract.
The company's share price hit a 52-week high Wednesday of $36.95 before closing the day at $36.24. The share price fell back by about 4% to close at $34.80 on Thursday, the same day Merrill Lynch downgraded the company's stock from "buy" to "hold" and the company itself announced fourth quarter net income of $41.9 million, up from $10.7 million in the fourth quarter of 2001.
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