Scientific Games to snap up Bally in $5.1bn deal
Gaming solutions provider Scientific Games has struck a deal to acquire online casino games and solutions firm Bally Technologies in a deal worth $5.1 billion (€3.8 billion), it was announced on Friday afternoon.
Scientific Games’ offer of $83.30 per share, worth a total of about $3.27 billion, represents a 38% increase on Bally’s closing price of $60.17 on Thursday on the New York Stock Exchange.
The companies said in a joint statement that the value of the total deal, including debt, is $5.1 billion.
The statement added that the transaction would immediately enhance Scientific Games’ earnings outlook, while the companies anticipate $220 million in annual cost savings and $25 million in annual capital-expenditure savings.
The deal is expected to close in early 2015.
Bally acquired global gaming supplier SHFL Entertainment for $1.3 billion last year. Former SHFL chief executive officer Gavin Isaacs was appointed as Scientific Games’ new chief executive officer in June.
“I think the industry is just getting broader and broader,” Isaacs said in a conference call. “There are lots of smaller companies making inroads into the industry.”
Related article: Scientific Games names Isaacs as CEO