Nevada Regulators Approve Bally’s Acquisition of SHFL
Last week Nevada gambling regulators approved a $1.3 billion buyout by Bally Technologies Inc. of a rival casino device company formerly known as ShuffleMaster. The acquisition was approved in a joint meeting between the Nevada Gaming Control Board and the Nevada Gaming Commission.The boards of the two publicly traded companies approved the deal back in July and Bally Technologies President and CEO Ramesh Srinivasan described the deal as a strategic expansion that would broaden the range of products and services offered over a wider area including Australia and Asia.
The deal still needs federal regulatory approval; however, Srinivasan said that he expects it to be finalized by the New Year.
Bally has said it will pay $23.25 per share and will acquire $8 million in SHFL debt and $41 million in cash.
Bally was founded in 1932, it manufacturers slot machines including reel-spinning and video slots as well as producing casino management and accounting systems. SHFL is considerably younger; it was founded in 1983 and began making card-shuffling devices before expanding into further casino systems.
After Nevada regulators approved the deal SHFL stock went up 3 cents and Bally stock went up $2.02.