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Eldorado will acquire all of the outstanding shares of Caesars for a total value of $12.75 per share, consisting of $8.40 per share in cash consideration and 0.0899 shares of Eldorado common stock for each Caesars share of common stock.
Eldorado and Caesars shareholders will hold approximately 51 percent and 49 percent of the combined company's outstanding shares, respectively.
"Eldorado's combination with Caesars will create the largest owner and operator of U.S. gaming assets and is a strategically, financially and operationally compelling opportunity that brings immediate and long-term value to stakeholders of both companies," said Tom Reeg, Chief Executive Officer of Eldorado. "Together, we will have an extremely powerful suite of iconic gaming and entertainment brands, as well as valuable strategic alliances with industry leaders in sports betting and online gaming."
"This announcement is the culmination of a thorough evaluation by the Caesars Board of Directors," said Jim Hunt, Chairman of Caesars. "The Board unanimously concluded that the combination of these two companies creating an even stronger entity is a decision for our shareholders' consideration and vote for immediate and ongoing value."
The combined company will retain the Caesars name.