Slot machine maker Bally to buy SHFL Entertainment for $1.3 bn
17 July 2013
Bally Technologies, a US-based slot machine maker, yesterday agreed to buy SHFL Entertainment, a maker of casino games, for nearly $1.3 billion in cash.
Under the deal that has been approved by the board of both the Nevada-based companies, Bally will pay $23.25 per share, a premium of 24 per cent to SHFL closing price on 15 July.
SHFL, earlier called Shuffle Master, is a manufacturer of shuffling machines, table games, slot machines, and other casino products. The company's table game products include Let It Ride, Three Card Poker, Blackjack Switch, and Casino War.
Founded in 1932, Bally designs and manufactures advanced technology-based gaming devices and systems worldwide, as well as interactive and mobile solutions.
Bally's product line includes reel-spinning slot machines, video slot machines, wide-area progressives, and Class II, lottery, and central determination games and platforms.
Bally, the world's oldest slot manufacturing company, also offers several casino management, slot accounting, bonusing, cashless, and table-management solutions.
''Both Bally and SHFL have long histories of proven innovation, excellent customer service and successfully anticipating and adapting to changes within our industry, which makes bringing our two companies together a great strategic fit,'' said Ramesh Srinivasan, Bally's president and CEO.
''The transformational acquisition of SHFL will further enhance our ability to deliver future growth and serve our customers. SHFL's intellectual property, renowned brands and industry-leading suite of diverse, high-performance products will enable us to offer an unparalleled offering of gaming products and services,'' he added.
The acquisition will provide Bally access to key strategic geographies like Australia and Asia and significantly increase revenues.
"We believe that now is the right time to join forces with Bally as there is a unique opportunity to combine each other's many strengths, particularly our talented teams who have been the key drivers of success for each organization,'' said Gavin Isaacs, SHFL's CEO.