Scientific Games To Buy Bally Technologies In $5.1 Bln Worth Deal - Quick Facts

(RTTNews) - Scientific Games Corp. (SGMS) has signed a definitive merger deal to acquire Bally Technologies, Inc. (BYI) for $83.30 in cash per share, representing a 38 percent premium to Bally's closing stock price on July 31, 2014. Including the refinancing of about $1.8 billion of existing Bally net debt, the aggregate transaction value is nearly $5.1 billion.

This merger would expand Scientific Games' portfolio of products and solutions to include leading casino management systems and table products, including automatic shufflers, proprietary table games and electronic table systems. Also, it would expand the range of Scientific Games' social and real-money iGaming and iLottery products and services.

Scientific Games and Bally generated combined revenue of around $3.0 billion in the 12-month period ended March 31, 2014.

Scientific Games' President and Chief Executive said: "The combined company will feature world-class research and development capabilities, an expanded base of recurring revenues and greater worldwide penetration in key geographies, including the AustralAsia region. In addition to the strategic value of the transaction to our customers, we expect to create significant shareholder value as the transaction is expected to deliver immediate earnings and cash flow accretion and will allow us to meaningfully reduce our leverage over the next three to four years. Reflecting both organizations' recent post-merger integration successes, we have identified and expect to realize $220 million in annual cost synergies and $25 million of annual capital expenditure savings by the end of the second year following the closing of the transaction."

Upon completion, Isaacs will continue as President and Chief Executive Officer of Scientific Games, and it is anticipated that Haddrill and David Robbins, Chairman of the Board of Directors of Bally, would join the board of Scientific Games, with Haddrill anticipated to serve as Vice Chairman. The acquisition is currently expected to be completed in early 2015.