Multimedia Games Shareholders Okay $1.2 Bln Merger With Global Cash Access

(RTTNews) - Multimedia Games Holding Co Inc (MGAM) said Wednesday that at a special meeting, its shareholders approved the $1.2 billion merger with Global Cash Access Holdings Inc (GCA).

More than 99% of the votes represented and cast at the meeting, or approximately 87% of the total outstanding shares of common stock eligible to vote as of the October 21 record date, were voted in favor of the adoption of the merger.

Shareholders also approved the non-binding advisory proposal regarding merger-related named executive officer compensation with a vote of approximately 90% of the votes represented and cast at the meeting.

Upon the closing of the transaction, Multimedia Games shareholders (other than Multimedia Games shareholders who have properly exercised rights of appraisal) will be entitled to receive $36.50 in cash, without interest, for each share of Multimedia Games common stock owned at the time of the transaction's closing.

The merger, which is expected to be completed later this month, is still subject to obtaining certain required regulatory approvals and certain other customary closing conditions.

In September, Global Cash Access agreed to acquire all the outstanding stock of Multimedia Games for $36.50 per share or about $1.2 billion in cash. The transaction is expected to immediately add to Global Cash Access' earnings.

The merger is expected to achieve about $30 million of synergies as a combined entity. On a pro-forma basis, it is estimated to generate about $800 million in revenues and around $217 million in adjusted EBITDA.

Global Cash Access provides cash access services and related equipment and services to the gaming industry. Austin, Texas-based Multimedia Games develops gaming technology.

Global Cash Access noted that the acquisition of Multimedia Games uniquely positions it as an important strategic partner to gaming operators by offering them solutions across their entire gaming floor.

The combined company's headquarters will remain in Las Vegas, Nevada, and its game development operations will be based in Austin, Texas.