Las Vegas-based casino games maker Bally Technologies (NYSE:BYI) inked plans on Tuesday to buy SHFL Entertainment (NASDAQ:SHFL) in a deal valued at $1.3 billion as it looks to expand its artillery of innovative gambling technologies.
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The purchase, at $23.25 a share in cash, represents a premium of 24% over SHFL’s closing price on Monday. SHFL shares were up 21.6% to $22.75 in recent early trade, while Bally's climbed 7% to $65.19.
Both Bally and SHLF make a wide range of gaming products for casinos, with Bally focusing on anything from spinning-reels and slot machines to video lotteries and SHFL building automatic card shufflers, roulette chip sorters, table games and slot machines.
"United, we become a larger, stronger organization that we believe will best position the company for future growth,” SHLF chief executive, Gavin Isaacs, said in a statement.
The transaction remains subject to SHFL shareholder and regulatory approvals and other customary closing conditions. If all goes as scheduled, the deal is expected to close no later than June 15, 2014.
Bally says it has secured committed financing to fund the transaction.