Serving the themed entertainment community

Latest News

  • Pico Group selects AV Stumpfl PIXERA media servers for new exhibit at Singapore Discovery Centre
  • St. Louis CITY SC to create comprehensive professional sports campus in downtown St. Louis
  • Extreme Engineering completes Cloud Coaster at Quest, Doha Oasis
  • Former Walt Disney Imagineering executive Ian MacVittie joins Technifex
  • WonderWorks Pigeon Forge introduces new STEM exhibit explaining Earth’s spheres
  • Registration now open for Integrated Systems Europe (ISE) 2021, FREE registration for IPM readers
  • Themed Entertainment Association hires executive search firm for Executive Director position
  • Seven Seas Food Festival returns to SeaWorld San Diego
  • Home
  • Opportunity Hub
    • Leads & Opportunities
    • Webinar Calendar
    • Submit a Webinar
  • Explore
    • Features
    • News
    • COVID-19
  • Issues
    • 2020
      • #85 – Looking forward to the future
      • #84 – Everything the industry has to offer
      • #83 – Waterparks and more!
      • #82 – Solving Problems with Innovation
      • #81 COVID-19 and beyond
      • IPM guide to AV 2020
    • 2019
      • #80 – IAAPA 2019
      • #79.5 – IAAPA Expo 2019 Preview
      • #79 Europe and Waterparks
      • #78 – Asia/Tech
      • #77 – The Best in Themed Entertainment
    • 2018
      • #76 – Year End/Trade Show Round-up
      • #75 – IAAPA 2018
      • #74 – EME/Waterparks
      • #73 – Asia and Technology
      • #72 – Dubai/Museums
      • #71 – MENA/Entertainment
    • 2017
      • #70 – IAAPA 2017
      • #69 – Game Changers
      • #68 Going Global: Technology on the International Stage
      • #67 – Experience Design: Many Faces Many Places
      • #66 Theatrical Influence and Convergence
    • 2016
      • #65 IAAPA 2016
      • #64 Waterpark, Zoo & Aquarium 2016
      • #63 Technology 2016
      • #62 International
      • #61 Museums and Expanding Markets
    • 2015
      • #60 – IAAPA 2015
      • #59 – Zoos/Aquaria and Waterparks 2015
      • #58 – Technology 2015
      • #57 – International 2015
      • #56 – Museums 2015
    • 2014
      • #55 – IAAPA 2014 / Tenth Anniversary
      • #54 – Waterparks, Zoos and Aquariums 2014
      • #53 – Technology 2014
      • #52 – International 2014
      • #51 – Museums 2014
    • 2013
      • #46 – Museums 2013
      • #47 – International 2013
      • #48 – Technology 2013
      • #49 – Waterparks 2013
      • #50 – IAAPA 2013
      • 2013 Wrap-Up
    • 2012
      • #45 – IAAPA & WWA Wrap-Up
      • #44 – IAAPA
      • #43 – Waterparks
      • #42 – Technology
      • #41 – International
      • #40 – Museums
  • Subscribe
  • Advertise
  • About
    • About InPark
    • Privacy Policy
  • IPM books
    • Screens to scenes: Christie’s visual technology
    • Tales from the Expo
    • Themed entertainment in academia
  • follow
    • Facebook
    • Twitter
    • Linked
    • Youtube

Scientific Games Expands Gaming Portfolio with Acquisition of Bally Technologies

Aug 04, 2014 Joe Kleiman Business, News, Technology & Media Comments Off on Scientific Games Expands Gaming Portfolio with Acquisition of Bally Technologies


Scientific Games Expands Gaming Portfolio with Acquisition of Bally Technologies

The acquisition of Bally provides us with a unique opportunity to combine two exceptional companies with long track records of creating leading-edge games and gaming technology products for players and delivering innovative solutions to our customers.” — Gavin Isaacs, Scientific Games’ President and Chief Executive Officer

New York, NY and Las Vegas, NV, USA (August 1, 2014) /BUSINESS WIRE/— Scientific Games Corporation (Nasdaq: SGMS) (“Scientific Games”) and Bally Technologies, Inc. (NYSE: BYI) (“Bally”) today announced that the companies have entered into a definitive merger agreement whereby Scientific Games has agreed to acquire all of the outstanding Bally common stock for $83.30 in cash per share, which represents a 38 percent premium to Bally’s closing stock price on July 31, 2014. The aggregate transaction value is approximately $5.1 billion, including the refinancing of approximately $1.8 billion of existing Bally net debt. The transaction was unanimously approved by the boards of directors of the two companies.

“With leading gaming, lottery, and interactive content, world-class systems capabilities and table game offerings, we believe that the combined company will be uniquely positioned as a strategic partner for gaming and lottery operators, offering a highly diversified suite of value-enhancing products and services across multiple worldwide distribution channels and platforms,” said Gavin Isaacs, Scientific Games’ President and Chief Executive Officer. 

“Having worked side-by-side with the talented teams at Bally and more recently Scientific Games, I am confident this combination brings together best-of-breed cultures and is occurring at a truly opportune time as both companies are committed to bringing the highest value products and services to customers,” continued Mr. Isaacs. “The combined company will feature world-class research and development capabilities, an expanded base of recurring revenues and greater worldwide penetration in key geographies, including the AustralAsia region. In addition to the strategic value of the transaction to our customers, we expect to create significant shareholder value as the transaction is expected to deliver immediate earnings and cash flow accretion and will allow us to meaningfully reduce our leverage over the next three to four years. Reflecting both organizations’ recent post-merger integration successes, we have identified and expect to realize $220 million in annual cost synergies and $25 million of annual capital expenditure savings by the end of the second year following the closing of the transaction.”

“The combination with Scientific Games will benefit our customers and shareholders,” said Richard Haddrill, Bally’s Chief Executive Officer. “Increased scale, geographic diversity and product development capabilities will create a new runway of growth opportunities through new products and a comprehensive portfolio of customer-focused solutions. This transaction delivers immediate value to our shareholders, and the highest share price in our history. We look forward to working with our new colleagues at Scientific Games to execute a detailed integration plan to realize customer satisfaction and additional value.”

Expanded Portfolio and Improved Operating Efficiencies

The transaction would expand Scientific Games’ portfolio of products and solutions to include leading casino management systems and table products, including automatic shufflers, proprietary table games and electronic table systems. It would also expand the range of Scientific Games’ social and real-money iGaming and iLottery products and services. This expanded portfolio is expected to position Scientific Games to better cross-utilize content and technology across the lottery, gaming and interactive sectors to propel future growth.

The combined company is expected to have world-class global sourcing, production, engineering and product development capabilities, as well as a large installed global base of diverse recurring revenue products and services. Scientific Games and Bally generated combined revenue of approximately $3.0 billion in the 12-month period ended March 31, 2014.

Scientific Games expects to achieve the anticipated $220 million of cost synergies and $25 million of capital expenditure savings by consolidating operations and generating efficiencies in the areas of manufacturing, engineering, field and customer service and administrative operations. Scientific Games anticipates incurring $75 million of costs to achieve the cost synergies and $40 million in capital costs to complete the integration of the companies. In addition, the combined company is expected to benefit from accelerated utilization of various tax attributes against U.S.-based pre-tax income.

Transaction Terms

Scientific Games would acquire all of the outstanding shares of Bally for $83.30 per share in cash, for a total transaction value of approximately $5.1 billion, including net debt of approximately $1.8 billion. The acquisition would be financed with debt and cash on hand and Scientific Games has obtained committed debt financing for the transaction, which is not subject to a financing contingency.

The acquisition is subject to customary closing conditions, including receipt of Bally shareholder approval and antitrust and gaming regulatory approvals, and is currently expected to be completed in early 2015. Scientific Games and Bally are both licensed in more than 300 gaming jurisdictions worldwide, which is expected to help facilitate obtaining the required gaming regulatory approvals.

Upon closing of the transaction, Mr. Isaacs will continue as President and Chief Executive Officer of Scientific Games, and it is anticipated that Mr. Haddrill and David Robbins, Chairman of the Board of Directors of Bally, will join the board of directors of Scientific Games, with Mr. Haddrill anticipated to serve as Vice Chairman.

www.scientificgames.com

Share this:

  • Tweet
  • Print

  • acquisitions, Bally, casinos, gaming technology
  • tweet
Related articles
  • Global attractions industry reacts to coronavirus outbreak
    Global attractions industry reacts to...

    Comments Off on Global attractions industry reacts to coronavirus outbreak

  • MGM Resorts sells iconic Vegas Strip resort Circus Circus to owner of Treasure Island
    MGM Resorts sells iconic Vegas Strip...

    Comments Off on MGM Resorts sells iconic Vegas Strip resort Circus Circus to owner of Treasure Island

  • Cedar Fair purchases 235 acre lakeside golf resort near Cedar Point
    Cedar Fair purchases 235 acre lakeside...

    Comments Off on Cedar Fair purchases 235 acre lakeside golf resort near Cedar Point

  • Dolly Parton’s dinner theater company expands with acquisition of Fee Hedrick Entertainment
    Dolly Parton’s dinner theater...

    Comments Off on Dolly Parton’s dinner theater company expands with acquisition of Fee Hedrick Entertainment

More in this category
  • Pico Group selects AV Stumpfl PIXERA media servers for new exhibit at Singapore Discovery Centre
    Pico Group selects AV Stumpfl PIXERA...

    Mar 05, 2021 Comments Off on Pico Group selects AV Stumpfl PIXERA media servers for new exhibit at Singapore Discovery Centre

  • St. Louis CITY SC to create comprehensive professional sports campus in downtown St. Louis
    St. Louis CITY SC to create...

    Mar 05, 2021 Comments Off on St. Louis CITY SC to create comprehensive professional sports campus in downtown St. Louis

  • Extreme Engineering completes Cloud Coaster at Quest, Doha Oasis
    Extreme Engineering completes Cloud...

    Mar 04, 2021 Comments Off on Extreme Engineering completes Cloud Coaster at Quest, Doha Oasis

  • Former Walt Disney Imagineering executive Ian MacVittie joins Technifex
    Former Walt Disney Imagineering...

    Mar 04, 2021 Comments Off on Former Walt Disney Imagineering executive Ian MacVittie joins Technifex


Quick Takes

My Tweets

Latest Issue

Leads & Opportunities

  • Themed Entertainment Association hires executive search firm for Executive Director position
    Themed Entertainment Association hires executive search...

    Mar 04, 2021 Comments Off on Themed Entertainment Association hires executive search firm for Executive Director position

    Position profile is anticipated in mid-March
  • Eleventh Hour seeks Technical Proposal Writer/Manager for entertainment company client
    Eleventh Hour seeks Technical Proposal Writer/Manager for...

    Feb 16, 2021 Comments Off on Eleventh Hour seeks Technical Proposal Writer/Manager for entertainment company client

    The position is ideal for a technical proposal writer who...
  • Little Canada seeks Visual Arts Specialist
    Little Canada seeks Visual Arts Specialist

    Feb 16, 2021 Comments Off on Little Canada seeks Visual Arts Specialist

    Little Canada is a highly detailed and animated journey...
  • Scenario seeks LA-based safety manager
    Scenario seeks LA-based safety manager

    Feb 15, 2021 Comments Off on Scenario seeks LA-based safety manager

    The main office/shop located in San Fernando with various...
  • Steelman Partners and Gensler designing 75 hectare resort near Angkor Wat
    Steelman Partners and Gensler designing 75 hectare resort...

    Feb 10, 2021 Comments Off on Steelman Partners and Gensler designing 75 hectare resort near Angkor Wat

    The initial phase is expected to be completed by 2025 at an...

Top Posts

  • Seven Seas Food Festival returns to SeaWorld San Diego
    Seven Seas Food Festival returns to SeaWorld San Diego
  • Sally Brings the Animal Animatronics of Five Nights at Freddy's to Life in New Attraction Concept
    Sally Brings the Animal Animatronics of Five Nights at Freddy's to Life in New Attraction Concept
  • UAE and Israel relations stand to benefit Middle East tourism and Dubai Expo 2020
    UAE and Israel relations stand to benefit Middle East tourism and Dubai Expo 2020
  • Space Center Houston to honor Apollo program during Spring Break
    Space Center Houston to honor Apollo program during Spring Break
  • What will it mean to postpone Expo 2020 Dubai until 2021?
    What will it mean to postpone Expo 2020 Dubai until 2021?
  • St. Louis CITY SC to create comprehensive professional sports campus in downtown St. Louis
    St. Louis CITY SC to create comprehensive professional sports campus in downtown St. Louis
  • San Diego Zoo Wildlife Alliance: Conserving the future
    San Diego Zoo Wildlife Alliance: Conserving the future

  • Facebook
  • Twitter
  • LinkedIn
  • YouTube
  • Instagram

Categories

  • IPM Interviews
  • Theme Parks
  • Museums
  • Water Parks
  • Attractions
    • Haunts
    • Zoos & Aquariums
  • World markets
    • Asia
    • Europe & Middle East
    • Latin America & Mexico
    • North America
  • Technology & Media
  • Business
    • Events
    • People
  • World Expos

InPark Magazine

2349 E Ohio Ave
Milwaukee, WI 53207 USA
262.412.7107
mpalicki@inparkmagazine.com

View our Privacy Policy

Copyright 2018 InPark Magazine / All rights reserved
  • Facebook
  • Twitter
  • LinkedIn
  • YouTube
  • Instagram