NEW YORK (TheStreet) -- Shares of Scientific Games Corp. (SGMS) are up 8.55% to $9.27 after the supplier of solutions to lottery and gaming organizations worldwide agreed to acquire Bally Technologies (BYI) for about $3.3 billion, excluding net debt, buying up a bigger rival as consolidation in the slot-machine industry accelerates, Bloomberg reports.
Scientific Games, controlled by billionaire Ronald Perelman, will pay $83.30 in cash per Bally common share, the companies said in a statement today, a premium of 38% over Bally's closing price yesterday.
The deal, which includes net debt of $1.8 billion, will immediately add to Scientific Games's earnings per share, the statement said.
Shares of Bally Technologies are up 29.55% to $77.95
TheStreet Ratings team rates SCIENTIFIC GAMES CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SCIENTIFIC GAMES CORP (SGMS) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."