Scientific Games Gets Ready to Absorb Bally Technologies
Bally Technologies has been bought out by Scientific Games for a reported $5 billion. According to the terms of the deal, Scientific Games will pay a figure of $3.3 billion and it will take over the $1.8 billion in debt owed by Bally’s. This places the deal at over $5.1 billion. The merger will see Bally’s absorbed into Scientific Games to form a massive gaming supplier company and lottery company.
Scientific Games Merger with Bally a Buffer to GTech and IGT
This will allow both companies to compete with the recently formed GTech and IGT merger. Back in July, it was announced that Italian GTECH (GTCH.MI) was ready to purchase US slots maker IGT (International Game Technology) for a staggering sum of $6.4 billion (inclusive of debt). The aforementioned deal was the biggest ever acquisition between a foreign gaming company and a US company.
Both Bally Technologies and Scientific Games have been snapping up various companies to expand their scope of operations. As the race continues between these operators, they have been adding to their portfolios to reach an even greater audience of gaming fans. Bally’s purchased SHFL Entertainment and Scientific Games bought WMS – the land-based/online slots manufacturer.
Bally’s Unique Jackpot System
Bally Technologies has a one-of-a-kind jackpot system and that is precisely why Scientific Games was eager to acquire it. Bally’s began as a pinball manufacturer in the 1920s and soon went into slots in the 1930s. As it grew, so it began manufacturing gaming equipment. Likewise, Scientific Games also has an interest in gaming equipment by way of its video lottery systems and table games.
Financial Benefits of the Merger
There are many benefits to the merger, including being able to combine the two companies for the purposes of creating cutting-edge gaming and technological products. Customers will be able to enjoy innovative solutions for all their gaming needs. Scientific Games is now ideally suited to becoming a strategic partner for many lottery and gaming providers. The cost savings that both companies are expected to enjoy will be significant. Both Bally Technologies and Scientific Games are likely to save $220m annually and $25m in capital expenses annually. This will be done through the consolidation of operations and efficiency in admin procedures, customer service, engineering and manufacturing.
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