NEW YORK (The Deal) -- Shares of Multimedia Games (MGAM)  rallied Monday morning on the news that the slot machine maker had reached a deal to be acquired by Las Vegas casino cash provider Global Cash Access Holdings  (GCA) for $1.2 billion.

Global Cash will pay $36.50 per share in cash for all outstanding shares of Multimedia Games, representing a 31% premium over the target's closing share price of $27.78 on Friday, Sept. 5. Global Cash intends to finance the acquisition using debt financing and available cash.

The combined entity is expected to create $30 million in synergies, earn about $800 million in revenue, and have about $217 million in adjusted Ebitda, based upon the twelve months ended June 30, the companies said in a Monday statement. The acquisition is expected to be immediately accretive.

Multimedia Games, of Austin, Texas, makes and distributes technology for the Native American and commercial casino industry, including video slot and reel-spinning slot machines and products serving the lottery market. The company also licenses games from gaming companies including WMS Industries, a subsidiary of Scientific Games (SGMS - Get Report) , and Aristocrat Technologies.

If the transaction is successfully executed, Multimedia Games would become the third large gaming technology player to be acquired in just the last two months. Gambling and lottery equipment maker Scientific Games announced Aug. 1 it was buying its competitor Bally Technologies (BYI)  in a $5.07 billion cash and assumed debt deal. Meanwhile, International Game Technology, on July 16, struck a deal to be taken over by Italian lottery operator Gtech for $6.4 billion. The deal expected to close in the first half of 2015.

Shares of Multimedia Games, trading on the Nasdaq, surged about 29%, to just under the offer price, at $35.85, on Monday morning.

Multimedia Games generated $50.3 million during its third quarter ended June 30, up from $48.1 million a year earlier. Ebitda climbed to $25.9 million, from $25 million, over the same period.

The transaction, contingent on shareholder approval and antitrust and gaming regulatory approvals, is expected to be completed in early 2015.

Current Global Cash Access CEO Ram V. Chary will continue to lead the combined entity, which will be headquartered in Las Vegas.

This is not the first time Multimedia Games pursued a sale. The gaming technology company retained Deutsche Bank Securities in March 2010 to help find a buyer, but the sale process was canceled in September of that year as interim CEO Patrick Ramsey became the company's permanent chief executive.

Global Cash Access received financial advice from Bank of America Merrill Lynch's Kevin Brunner, Cavan Yang, Josh Whipple, Evan Ladouceur and Dan Kelly. Pillsbury Winthrop Shaw Pittman LLP and DLA Piper's David Lewis and Jamie Knox provided legal advice.

Wells Fargo Securities' Brian Maier, Stavros Tsibiridis, Dan Goggins provided financial advice to Multimedia Games, while Latham & Watkins offered legal counsel.

BofA and Deutsche Bank have agreed to provide committed debt financing to Global Cash Access on its proposed acquisition.