The company, which designs, manufacturers, and supplies gaming machines and systems to casino operators, is being acquired by Global Cash Access (GCA) for $1.2 billion in cash.
So far, 9.72 million shares of Multimedia Games have exchanged hands as compared to its average daily volume of 271,000 shares. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Global Cash, a provider of cash access data intelligence and solutions to the gaming industry, said it agreed to acquire the Multimedia Games' outstanding stock for $36.50 per share.
The company is purchasing Multimedia Games as the acquisition "strengthens and broadens GCA's portfolio of solutions, which has been embraced by our customer base," said Global Cash CEO Ram Chary.
Additionally, several law firms have announced they are launching investigations into Multimedia Games to determine if the company breached its fiduciary duties to shareholders by failing to conduct a fair sales process, and whether or not the sale undervalues the company, negatively affecting shareholders.
Shares of Global Cash Access are down by -0.47% to $7.49.
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: