Tuesday July 16,2013 : BALLY TO ACQUIRE SHFL ENTERTAINMENT
Industry consolidation as rivals merge
Bally Technologies, Inc. has announced the acquisition of rival SHFL Entertainment for a $1.3 Billion price tag, 24 percent above Monday's closing price of SHFL's common stock.
Bally will acquire all of the outstanding shares of SHFL for a per share price of $23.25 in cash, including debt of $8 million and cash of $41 million as of April 30, 2013.
The agreement was unanimously approved by both the SHFL and Bally Boards of Directors and combines two gaming technology staples in the industry.
Gavin Isaacs, SHFL's Chief Executive Officer said: "United, we become a larger, stronger organization that we believe will best position the company for future growth. Equally important, we share a common vision to build the industry's leading supplier based on delivering superior products, solutions and services to customers around the world."
"The transformational acquisition of SHFL – which joins two high-caliber, talented and creative teams – will further enhance our ability to deliver future growth and serve our customers," added Ramesh Srinivasan, Bally's President and Chief Executive Officer.
"SHFL's intellectual property, renowned brands and industry-leading suite of diverse, high-performance products will enable us to offer an unparalleled offering of gaming products and services, which – when combined with our content, technology, operational capabilities and respective geographic footprints – will provide the most comprehensive product portfolio offered around the world."
Bally said the merger will broaden its reach and strengthen its presence in key geographic areas that include the Asian market.