Bally Technologies Agrees To Acquire Dragonplay

(RTTNews) - Bally Technologies Inc. (BYI) announced that it agreed to acquire Dragonplay Ltd., online social casino company headquartered in Tel Aviv, Israel, with top-grossing applications for Android, as well as a significant presence on Facebook and Apple iOS.

Total consideration includes about $51 million in upfront cash, plus the amount of net working capital, payable to Dragonplay's shareholders in exchange for all of the issued and outstanding equity, and about $49 million in additional earn-out consideration and employee retention payments over the next 18 months subject to Dragonplay meeting certain financial performance targets.

Bally expects to fund the transaction from cash on hand and proceeds from its revolving credit facility.

For the 12 months ended March 31, 2014, Dragonplay generated over $10 million in EBITDA or earnings before interest, taxes, depreciation and amortization, including share-based compensation.

Subject to completion of certain customary closing conditions, Bally expects to close the acquisition of Dragonplay in July 2014 and expects the acquisition to be accretive to Bally's fiscal 2015 adjusted earnings per share.