Acquisitions and Dispositions

Acquisitions

On July 19, 2012, we acquired substantially all of the assets of Parspro.com ehf ("Parspro") for approximately $11,800. Parspro is a provider of sports betting systems and related products via point of sale terminals, the internet and mobile devices. Approximately $9,900 of the $11,800 purchase price was in excess of the fair value of the acquired net assets and has been allocated to goodwill. The acquired assets include technology that we have integrated into our Lottery Systems business and our interactive games platform as part of an expanded service offering to lottery customers. Had the operating results of Parspro been included as if the transaction was consummated on January 1, 2011, our pro forma results of operations for the years ended December 31, 2012 and 2011 would not have been materially different.

On June 8, 2012, we acquired 100% of the equity interests of Provoloto for approximately $9,720, subject to certain adjustments, including an estimated earn-out payable to the sellers of approximately $2,000 contingent on the future performance of the acquired business. Provoloto develops and distributes instant lottery tickets and manages instant ticket lotteries for Mexican charities. Approximately $5,100 of the $9,720 purchase price was in excess of the fair value of the acquired net assets and has been allocated to goodwill. The operating results of Provoloto have been included in our Printed Products segment and have been consolidated in our results of operations since the date of acquisition. Had the operating results of Provoloto been included as if the transaction was consummated on January 1, 2011, our pro forma results of operations for the years ended December 31, 2012 and 2011 would not have been materially different.

On June 7, 2012, we acquired ADS/Technology and Gaming, Ltd. ("ADS") for £3,450, subject to certain adjustments. ADS provides maintenance and other services for LBOs in the U.K. We have integrated ADS into our existing Gaming business. Approximately £2,200 of the £3,450 purchase price was in excess of the fair value of the acquired net assets and has been allocated to goodwill. The operating results of ADS have been included in our Gaming segment and have been consolidated in our results of operations since the date of acquisition. Had the operating results of ADS been included as if the transaction was consummated on January 1, 2011, our pro forma results of operations for the years ended December 31, 2012 and 2011 would not have been materially different.

Dispositions

On March 25, 2013, we completed the sale of our installed base of gaming terminals in our pub business to Gamestec, for a purchase price of £534. In addition, we entered into certain ancillary agreements pursuant to which, among other things, we provide certain transitional services to Gamestec for up to six months following the sale and license content and software to Gamestec. The revenue and expenses of the discontinued pub operations for the three and six months ended June 30, 2013 and 2012 are as follows:



	Three Months Ended
	June 30,
	2013			2012
Revenue:
Services	$	—		$	3,300

Operating expenses:
Cost of services (1)	341			2,347
Selling, general and administrative expenses	430			707
Employee termination and restructuring costs	—			299
Depreciation and amortization	—			2,268

Loss from discontinued operations	(771		)	(2,321		)

Other (expense) income	(1		)	100
Gain on sale of assets	—			—
Income tax benefits	180			544

Net loss from discontinued operations	$	(592	)	$	(1,677	)

(1) Exclusive of depreciation and amortization



	Six Months Ended
	June 30,
	2013			2012
Revenue:
Services	$	1,761		$	6,681

Operating expenses:
Cost of services (1)	2,892			4,903
Selling, general and administrative expenses	954			1,581
Employee termination and restructuring costs	—			870
Depreciation and amortization	597			4,318

Loss from discontinued operations	(2,682		)	(4,991		)

Other (expense) income	(46		)	56
Gain on sale of assets	828			—
Income tax benefits	442			1,209

Net loss from discontinued operations	$	(1,458	)	$	(3,726	)

(1) Exclusive of depreciation and amortization