American restaurant and arcade chain Dave & Buster's Inc. is reportedly exploring a sale or an initial public offering. The proposed exit could value the company at more than $1 billion. 

According to Reuters sources, Dave & Buster's is working with investment banks Goldman Sachs Group and Jefferies Group on the potential sale. The Dallas-based restaurant operator scrapped earlier plans to go public in October 2012.

Dave & Buster's was targeting earnings before interest, tax, depreciation and amortization (EBITDA) of nearly $130 million in fiscal year 2013, the report said. One of the sources told Reuters that Dave & Buster's may fetch 8 to 9 times the company's EBITDA in a sale. 

Dave & Buster's is owned by private equity firm Oak Hill Capital Partners. It was acquired by Oak Hill for $570 million in May 2010, the report said. Dave & Buster's owns and operates 65 venues that offer entertainment for adults and families, which includes sports-oriented, video and simulation games. Dave & Buster's venues also serve food and beverages, Reuters said.