Las Vegas Sun

September 30, 2014

Currently: 70° — Complete forecast | Log in | Create an account

Scientific Games strikes $3.3B deal to buy Bally Technologies

Image

Steve Marcus

Jose Figueroa of Puerto Rico looks over slot machines in Bally Technologies’ Pro Wave cabinets during the G2E convention at the Sands Expo Center Tuesday, Sept. 24, 2013.

NEW YORK — Scientific Games plans to pay about $3.3 billion to buy Las Vegas-based Bally Technologies in a deal that would combine makers of gambling equipment ranging from slot machines to instant-win lottery games.

The electronic gambling machine maker said Friday that it will pay $83.30 for each share of Bally. That amounts to a 38 percent premium to Bally's closing price of $60.17 on Thursday.

The deal value totals $5.1 billion counting about $1.8 billion in Bally debt.

The companies expect the transaction to close early next year, but it still needs approval from Bally shareholders and antitrust and gambling regulators.

The boards of both companies have already approved it.

Bally Technologies Inc. was founded during the Great Depression and started as a pinball maker. It makes reel-spinning and video slots and casino management and accounting systems.

Scientific Games Corp. sells instant-win lottery games and sports betting technology. It said the deal also will add table products like automatic shufflers and proprietary table games to its portfolio.

Bally CEO Richard Haddrill and Chairman David Robbins are expected to join the Scientific Games board after the deal closes.

Both companies completed sizeable acquisitions last fall. Scientific Games closed a $1.42 billion deal to buy gambling equipment company WMS Industries Inc. Bally finished its acquisition of rival casino device company SHFL Entertainment Inc., a deal valued at $1.3 billion including debt.

Bally shares jumped more than 29 percent, or $17.65, to $77.82 in morning trading Friday. Scientific Games stock also climbed more than 9 percent, or 79 cents, to $9.33. Meanwhile, the Standard & Poor's 500 index was nearly flat.

Join the Discussion:

Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.

Full comments policy