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Scientific Games strikes $3.3B deal to buy Bally

Scientific Games strikes $3.3B deal to buy Bally

CREATED Aug 1, 2014

NEW YORK (AP) -- Scientific Games says it will pay about $3.3 billion to buy slot machine maker Bally Technologies in a cash deal that expands its casino management system portfolio.

The electronic gambling machine maker said Friday that it will pay $83.30 for each share of Bally. That is a 38 percent premium to Bally's closing price of $60.17 on Thursday.

The deal value totals $5.1 billion counting about $1.8 billion in Bally debt.

The companies expect the transaction to close early next year, but it still needs approval from Bally shareholders and antitrust and gambling regulators.

Bally Technologies Inc. makes reel-spinning and video slots and casino management and accounting systems.  Scientific Games Corp. also sells instant-win lottery games and sports betting technology.

Bally shares are up 34 percent in premarket trading.