Slot machine maker Scientific Games to buy rival Bally By Reuters

Slot machine maker Scientific Games to buy rival Bally

WorldAug 01, 2014 12:46PM ET

This article has already been saved in your Saved Items

Slot machine maker Scientific Games to buy rival Bally

By Shailaja Sharma and Ramkumar Iyer

(Reuters) - U.S. Slot machine maker Scientific Games Corp (O:SGMS) will buy larger rival Bally Technologies Inc (N:BYI) in a $3.27 billion deal, the latest in a consolidating U.S. gaming industry.

The deal, which was put together in just over three weeks, will strengthen Scientific Games' casino management systems and table gaming products as well as help it expand in Australasia.

A new generation of gamers who prefer to make bets online have left U.S. slot machine makers questioning their own relevance. They also face increased competition as their core lower-income gambler base keep a tight lid on spending.

Credit rating firm Moody's downgraded its outlook for the U.S. gaming industry in June to "negative" from "stable".

"Following a trail of recent mergers, we believe the combination of Scientific Games and Bally Technologies makes sense strategically," BMO Capital Markets analyst Edward Williams said.

Italian gaming group GTech SpA (MI:GTCH) said last month it would buy slot machine maker International Game Technology (N:IGT) for $4.7 billion to strengthen its U.S. presence.

Scientific Games bought slot machines maker WMS Industries for $1.5 billion in January last year. Bally acquired Israeli online casino company Dragonplay Ltd in June, and casino equipment maker SHFL Entertainment in 2013.

Scientific Games's $83.30 per share cash offer was a 38 percent premium to Bally's Thursday closing of $60.17 on the New York Stock Exchange. The deal was valued at $5.1 billion, including debt of $1.8 billion.

Bally's shares jumped as much as 40 percent to a record $84.66 in morning trading, but were later up 30 percent at $78. Scientific Games's shares were up 3 percent at $8.78 after rallying up close to 20 percent.

BMO's Williams said he did not expect a competing bid, citing the high premium and the cost savings the deal would generate.

Scientific Games, backed by billionaire investor Ronald Perelman, said it expects to save $220 million and cut $25 million in capital expenditure annually by the end of the second year of the deal's close. It also expects tax benefits.

Perelman's MacAndrews & Forbes Holdings Inc holds a nearly 40 percent stake in Scientific Games.

The deal will add to Scientific Games's earnings per share and cash flow immediately on its closing — likely early next year — said the company, which had a market capitalization of $720 million as of Thursday.

Scientific Games estimated its revenue at $1.6 billion and that of Bally at $1.4 billion for the year ended March 31.

The company said it would finance the deal with cash on hand and debt financing from BofA Merrill Lynch, J.P. Morgan and Deutsche Bank Securities, who advised it on the deal. Cravath, Swaine & Moore LLP served as the legal adviser.

Macquarie Capital and Groton Partners served as financial advisers to Bally. Its legal advisers are Skadden, Arps, Slate, Meagher & Flom LLP.

(Additional reporting by Supantha Mukherjee and Siddarth Cavale in Bangalore; Editing by Simon Jennings and Joyjeet Das)

From Hollywood to Detroit, pandemic-weary companies cautious on Omicron By Reuters - Nov 29, 2021 2

By Ben Klayman (Reuters) -Pandemic-weary corporations struggled to assess the impact of the new Omicron variant of the coronavirus on Monday, with industries from Hollywood movie...

3 Stocks with Monster Earnings Potential By StockNews - Nov 29, 2021

A rebounding economy and strong earnings growth this year have driven the market to new highs. While this high growth isn't expected to continue for the broad market, there are...

Chatham sweetens offer for RR Donnelley amid takeover battle By Reuters - Nov 29, 2021

(Reuters) - Chatham Asset Management on Monday raised its offer for RR Donnelley (NYSE:RRD) & Sons Co to $10.25 per share, hours after the printing company reaffirmed that it was...

Add a Comment

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read Investing.com's comments guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
						<a href="javascript:void(0);" id="commentFlag_{commentID}">
							<span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
						</a>
					</div>
				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

US 30	35,268.9	+133.0	+0.38%
US 500	4,669.3	+14.0	+0.30%
Dow Jones	35,135.94	+236.60	+0.68%
S&P 500	4,655.27	+60.65	+1.32%
Nasdaq	15,782.8	+291.2	+1.88%
S&P 500 VIX	22.96	-5.66	-19.78%
Dollar Index	96.220	+0.048	+0.05%

Crude Oil WTI	70.97	+1.02	+1.46%
Brent Oil	74.03	+0.90	+1.23%
Natural Gas	4.874	-0.005	-0.10%
Gold	1,785.15	-0.05	0.00%
Silver	23.230	+0.378	+1.65%
Copper	4.3570	+0.0015	+0.03%
US Soybeans	1,243.38	+1.26	+0.10%

SPDR S&P 500	464.60	+5.63	+1.23%
iShares Russell 2000	222.71	-0.14	-0.06%
Invesco QQQ Trust	399.69	+8.49	+2.17%
Direxion Daily Junior Gold Miners Bull 2X Shares	65.95	+0.52	+0.79%
iShares Silver	21.16	-0.21	-0.98%
ProShares Ultra VIX Short-Term Futures	16.84	-4.34	-20.49%
ProShares UltraPro QQQ	170.83	+9.99	+6.21%

Apple	160.24	+3.43	+2.19%
Alphabet A	2,910.6	+66.9	+2.35%
Tesla	1,136.99	+55.07	+5.09%
Amazon.com	3,561.57	+57.01	+1.63%
Netflix	663.84	-1.80	-0.27%
Meta Platforms	338.03	+4.91	+1.47%
Bank of America	45.59	-0.17	-0.37%

Slot machine maker Scientific Games to buy rival Bally

Related Articles