NEW YORK (TheStreet) -- Shares of Multimedia Games Holding Co. Inc. (MGAM) are climbing higher by 29% to $35.83 in mid-morning trading on Monday, after it was announced the company will be acquired by Global Access Holdings Inc. (GCA) for an aggregated purchase price of approximately $1.2 billion in cash.
Multimedia Games designs, manufactures, and supplies gaming machines and systems to casino operators in North America and select international operators. Global Cash is a provider of cash access and data intelligence services and solutions to the gaming industry.
Global Access will purchase all the outstanding common stock of Multimedia Games for $36.50 per share.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
"The acquisition of Multimedia Games represents a gaming-relevant transformational opportunity to combine two companies with rich gaming heritages and uniquely positions GCA as an important strategic partner to gaming operators by offering them deeper and more integrated solutions across their entire gaming floor," said Global Access CEO Ram Chary.
Shares of Global Access are higher by 2.66% to $7.72.
Separately, TheStreet Ratings team rates MULTIMEDIA GAMES HOLDING CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MULTIMEDIA GAMES HOLDING CO (MGAM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."