SBC News Voice of the Sports Betting Industry
Bally Technologies announced that its shareholder had approved the $5.1 billion acquisition plan by lottery and gambling technology provider Scientific Games Corp (SGC). The approval gives SGC the right to complete the acquisition deal by the end of 2014.
Bally shareholder approval is one of the set conditions which has to be cleared in order for the transaction to close.
Bally Shareholders agreed to the SGC buyout offer of $83.30 per share to acquire all outstanding shares. More than 99.61% of Bally Shareholders represented at the shareholders meeting on Tuesday approved of the transaction.
The acquisition of Bally Technologies will now be reviewed by the Nevada Gaming Control Board and the Nevada Gaming Commission, who will hold hearings in Las Vegas this Thursday.
Earlier this week SGC senior management confirmed that it had completed the financing for its buyout. SGC revealed that it had priced out $3.15 billion on debt to be used in the transaction, the company had also raised a further $2 billion to assist the buyout.
Speaking to investors during SGC’s third quarter earnings, CEO Gavin Isaacs outlined that management would look to create synergies between the two companies. Isaacs pointed that the acquisition of Bally would improve corporate cash flows whilst improve company operational efficiencies and reduce costs.
In a filing with the Securities and Exchange Commission in September, Scientific Games said the buyout could lead to a 21 percent reduction in the combined companies’ non-manufacturing and production workforce.
The number of jobs eliminated would provide a cost savings of $83 million — 57 percent of the anticipated $144 million in reductions expected in the merger’s first year.The information was part of a presentation officials from Scientific Games and Bally made to prospective lenders being sought to fund the transaction.
