NEW YORK (The Deal) -- Scientific Games (SGMS - Get Report) said Friday that it would acquire rival Bally Technologies (BYI - Get Report) in a $5.07 billion cash and assumed debt deal that would combine two large manufacturers of lottery and gambling equipment.
Terms of the deal call for New York-based Scientific Games to pay $83.30 in cash for Bally, a premium of 38% to the company's Thursday close, for total equity consideration of $3.27 billion. Scientific Games will also assume and refinance about $1.8 billion in existing Bally net debt.
Las Vegas-based Bally is one of the most celebrated names in gambling equipment, a maker of electronic and table games, systems and technologies for casinos and other users. Scientific Games, maker of lottery games, sports betting technology and social gaming products, said the deal would expand its portfolio of products to include a leading casino management systems and table products including automatic shufflers, proprietary games and electronic table systems.
Read More: Warren Buffett's Top 10 Dividend Stocks
"The acquisition of Bally provides us with a unique opportunity to combine two exceptional companies with long track records of creating leading-edge games and gaming technology products for players and delivering innovative solutions to our customers," Scientific Games CEO Gavin Isaacs said in a statement. "We believe that the combined company will be uniquely positioned as a strategic partner for gaming and lottery operators, offering a highly diversified suite of value-enhancing products and services across multiple worldwide distribution channels and platforms."Isaacs, who was named CEO of Scientific Games in June, is a one-time Bally executive who last year sold SHFL Entertainment to Bally for $1.31 billion.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts