Scientific Games Corp. agreed to acquire Bally Technologies Inc.
in an all-cash deal that values the slot-machine maker at about
$3.3 billion.
According to the companies, the deal is valued at $5.1 billion,
including the refinancing of about $1.8 billion of existing Bally
debt.
Bally shareholders will get $83.30 a share, representing a 38%
premium to Bally's closing price on Thursday. Bally shares jumped
36% to $82.00 in light premarket trading.
The deal expands Scientific Games' portfolio to include leading
casino management systems and table products, including automatic
shufflers, proprietary table games and electronic table systems,
the companies said.
Scientific Games and Bally generated combined revenue of about
$3 billion in the one-year period ended March 31, and the companies
noted that Scientific Games expects to realize $220 million of cost
synergies and $25 million of capital expenditure savings by
consolidating operations and creating efficiencies in the areas of
manufacturing, engineering, field and customer service, and
administrative operations.
Once the deal is closed, Scientific Games Chief Executive Gavin
Isaacs is expected to continue in his post, while Bally CEO Richard
Haddrill and Bally Chairman David Robbins, will join the board of
Scientific Games, the companies said. Mr. Haddrill is expected to
serve as vice chairman, they added.
The acquisition is expected to be completed early next year. The
transaction was unanimously approved by the boards of both
companies.
Write to Anna Prior at anna.prior@wsj.com
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