Bally Defends $1.3 Billion Acquisition of SHFL
Bally Technologies, a company that is based in the Las Vegas area, and was formerly known as Shuffle Master announces new deal today with a total of $1.3 billion. The gambling and gaming industry as a whole has been quite active lately, with a number of large acquisitions. This would be the third-largest acquisition of the year. Of course, the acquisition is pending, regarding regulatory approvals in a variety of other considerations, which the company will wait for. Shortly after announcing the new acquisition, the company defended their acquisition, stating that it would be good for growth of the company. They hope the transaction will close by the second quarter of 2014, allowing the company to make the most of their acquisition.
In the statement that was released by the company, they said that the acquisition was done because the company has a history of proven innovation, with excellent customer service that have allowed them to rapidly grow. It is believed that they will be a solid addition to the already growing Bally, a company which has made a number of changes to the way that it operates in recent years. It was a good strategic fit for the company, said Bally CEO Ramesh Srinivasan.
Bally was originally formed in 1932, and currently employs more than 3000 people in total. Mostly, the company deals for slot machines and gaming systems, but has been branching out as of late two different technologies. Their new product lines include reel spinning and video slot machines. Their wide range of different items that they provide make them an excellent option for casinos and businesses located in the Las Vegas area to utilize to their benefit.
SHFL was first founded in Minnesota in 1983. Since that time, it has continued to expand rapidly. Today, they are known as one of the premier electronic tabletop game systems. They were the first company to launch the automatic card shuffling machine, as further proof of the innovation that the company has been able to display since their inception. Today, the company also is a high-profile manufacturer of chip sorting machines, and gameplay tracking systems developed for casino games, helping casinos to better the way in which they are able to track the different games that they own.
With the acquisition, the company will pay $23.25 per-share and will acquire the fold that of the company, which totals $8 million. The company currently also has $41 million in cash, which will be changing hands during the transaction as well. This acquisition comes not too long after Pinnacle Entertainment paid $2.8 billion in December to acquire Ameristar Casinos. Other large acquisitions have also taken place this year, showing that the industry is rapidly recovering from down years following the 2008 financial collapse. It will be interesting to see how the company utilizes this acquisition to their advantage, and whether or not it proves to be a smart decision for the company in the long-term. SHFL is a highly regarded company within the industry, helping many businesses to improve their gaming operations.