Bally agrees US$1.3bn SHFL acquisition
US software giants to merge in deal Bally Technologies' CEO describes as "a great strategic fit"
Bally Technologies is set to acquire fellow US-facing land-based and online service provider SHFL Entertainment in a deal worth US$1.3bn.
The consideration to be paid in cash values SHFL at $23.25 a share, a 37% premium on its average closing price for the last 90 trading days. It has been unanimously approved by the boards of both companies.
Bally chief executive Ramesh Srinivasan, who took over from Richard Haddrill last November, described the move as “transformational” and “a great strategic fit” which will help the business provide the “most comprehensive product portfolio offered around the world”.
“SHFL’s intellectual property, renowned brands and industry-leading suite of diverse, high-performance products will enable us to offer an unparalleled offering of gaming products and services,” Srinivasan said in a statement.
“We believe that now is the right time to join forces with Bally as there is a unique opportunity to combine each other’s many strengths, particularly our talented teams who have been the key drivers of success for each organization,” SHFL chief executive Gavin Isaacs said.
“United, we become a larger, stronger organization that we believe will best position the company for future growth,” he added.
Both Bally and SHFL, previously known as Shuffle Master, were among the first egaming software providers to receive a Nevada egaming licence. Both have since also targeted the European market following the receipt of licences in Gibraltar.
The deal is the second US gaming merger this year to be valued at over one billion dollars, following Scientific Games’ $1.5bn acquisition of WMS Industries, announced in January.