Bally to buy SHFL Entertainment for $1.31B

[July 17, 2013]  LAS VEGAS (AP) -- Bally Technologies Inc. said Tuesday that it has agreed to buy fellow gambling equipment maker SHFL entertainment Inc. for about $1.31 billion in cash.

Bally says the addition of SHFL will complement its existing product portfolio, while also providing new access to land-based and online table games markets around the world.

Under the terms of the agreement, Bally will pay $23.25 per share for the company, which represents a 20 percent premium over SHFL's Monday closing stock price.

In premarket trading, SHFL shares jumped $3.95, or 21 percent, to $22.65. Bally shares rose $2.67, or 4 percent, to $63.58.

Bally, originally founded as a pinball machine maker in Chicago, started making slot machines in 1936. It now designs, manufactures, and distributes technology-based gambling devices and systems. The company also provides casinos with a variety of marketing, data management, accounting, player tracking, security and other software applications and tools.

SHFL, known for its automatic card shufflers, makes a variety of casino equipment, along with proprietary table, electronic table and online games.

Both companies are based in Las Vegas.

Tuesday's deal also includes debt of $8 million and cash of $41 million as of April 30. Bally said it expects the acquisition to eventually result cost savings of at least $30 million.

The deal, which remains subject to SHFL shareholders approval, is expected to close by the second quarter of calendar year 2014.

[Associated Press]

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