The slot machine manufacturers Bally Technologies have just completed a $1.3 billion buyout of their rival SHFL Entertainment, which means they have now formed one of the most diverse casino game manufacturers in the industry. This means that if you are playing in a land-based casino and winning at slot machines, there is going to be a higher chance than ever before that you are playing on one of their systems. The merger brings together the second-largest slot machine provider in the gaming industry with the largest provider of unique table games, as well as table game management systems and equipment, making it a historic deal which will really change the face of the industry.
As far as Bally is concerned, there is also a fantastic reason to get in on the achievements that SHFL have already gained, as they have a huge slot machine division in Australia, and this is a market which Bally has been looking to expand in. The deal was announced back in July, but was only approved by the gaming regulators in Nevada last week, which means that the two companies are now very happy with their results of their negotiations. They stated that the merger will actually result in an annual cost savings of around $30 million, thanks to the fact that they can now pool their resources and enjoy mutually beneficial arrangements. The Chief Executive Officer of Bally, Ramesh Srinivasan, has said that the cost savings from the deal will not mean job reductions – which is good news for the 3400 workers around the world who are employed by Bally, and the 900 who are working for SHFL. “These are two very profitable companies,” Srinivasan said. “This is a very positive growth story.” He added that Bally will now have seven different reporting divisions, and they will be utilising the new corporate headquarters off the Las Vegas Beltway which SHFL recently acquired, as well as the corporate campus south of McCarran International Airport.
SHFL shareholders will be receiving a $23.25 per share in cash for each share of stock that they hold. The company are currently not planning any further acquisitions, but they have announced a new senior management team that includes several executives who had come over from SHFL. One person who was not making the move, however, was the CEO of SHFL, Gavin Isaacs. He was at one time the chief operating officer of Bally, and so it is perhaps easily speculated that his departure from the company in the first place was something that did not make his return possible. Bally has stated that they will be providing an update on the integration and cost savings to their investors when they announce their second-quarter earnings in early February, the first report that they will be making after the merger. It is absolutely sure that this is going to be good news for both companies, as they will be much stronger together than they were alone, and they were pretty strong alone.