Bally Technologies, Inc. Completes Acquisition of SHFL entertainment, Inc.
November 25 2013 - 9:18AM
Business Wire
Combination creates a world-class,
end-to-end gaming technology innovator with the industry’s most
diversified product suite and several successful brands
Bally Technologies, Inc. (NYSE: BYI) (“Bally”), a leader in
gaming machines, table-game products, casino-management systems,
interactive applications, and networked and server-based systems
for the global gaming industry, today announced that it has
completed the acquisition of SHFL entertainment, Inc. (NASDAQ
Global Select Market: SHFL) (“SHFL”). As previously announced, SHFL
shareholders are receiving $23.25 per share in cash for each share
of SHFL stock. The transaction is valued at approximately $1.3
billion, including assumed net debt.
“We are thrilled to announce the successful completion of our
acquisition of SHFL, marking the beginning of a combination of two
best-in-class, highly complementary and customer-centric gaming
technology companies that will be even stronger together. I want to
personally thank everyone involved in the process which led to a
successful and accelerated close,” said Ramesh Srinivasan, Bally
Technologies’ President and Chief Executive Officer. “Bally and
SHFL both have a strong culture of commitment to innovation,
responsive customer service, and quickly adapting to change in a
fast-paced industry. As a combined company, we believe we will
enhance our ability to serve our customers, accelerate innovation,
improve upon our collective product portfolio, and deliver
meaningful long-term value to our shareholders.”
Srinivasan continued, “We have dedicated significant resources
towards integration-planning efforts over the past several months
which have reinforced our expectations around the business and
financial objectives for the acquisition. Our integration-planning
efforts have exceeded our initial expectations as demonstrated by
the accelerated closing of the acquisition, day one assembly of a
combined world-class executive management team, and rapid
identification of incremental opportunities for revenue and synergy
development. We look forward to providing an update on our second
quarter fiscal year 2014 earnings call in early February 2014.”
In connection with the acquisition, Bally amended and restated
its existing $1.1 billion credit facility and closed a new $1.1
billion Term Loan B facility with an all-in yield of 4.375 percent.
Proceeds from the new Term Loan B facility and excess capacity
under the existing credit facility will be used to fund the
acquisition and pay related fees and expenses.
About Bally Technologies, Inc.
Founded in 1932, Bally Technologies (NYSE: BYI) provides the
global gaming industry with innovative games, table-game products,
systems, mobile, and iGaming solutions that drive revenue and
provide operating efficiencies for gaming operators. For more
information, please contact Laura Olson-Reyes, Senior Director,
Marketing & Corporate Communications, at 702-584-7742, or visit
http://www.ballytech.com. Connect with Bally on Facebook, Twitter,
YouTube, LinkedIn, and Pinterest.
Forward-Looking
Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements describe future expectations,
plans, results or strategies and can often be identified by the use
of terminology such as “may,” “will,” “estimate,” “intend,”
“continue,” “believe,” “expect,” “anticipate,” “estimate,”
“should,” “potential,” “opportunity,” or similar terminology. These
statements are based upon management’s current expectations,
beliefs, assumptions and estimates and are not guarantees of future
results or performance. Similarly, statements herein that describe
the acquisition of SHFL and other statements of management’s
expectations, beliefs, assumptions, estimates and goals are
forward-looking statements. It is uncertain whether any of the
events or results anticipated by the forward-looking statements
will transpire or occur, or if any of them do, what impact they
will have on the results of operations and financial condition of
the combined company or the price of Bally’s stock. These
forward-looking statements involve certain risks and uncertainties
that could cause actual results to differ materially from those
indicated in such forward-looking statements, including but not
limited to: (i) the ability of Bally to successfully integrate
SHFL’s operations, product lines and technology; (ii) the ability
of Bally to implement its plans, forecasts and other expectations
with respect to SHFL’s business and realize additional
opportunities for growth and innovation; and (iii) the other risks,
uncertainties and important factors contained and identified
(including under the heading “Risk Factors”) in Bally’s and SHFL’s
filings with the Securities and Exchange Commission, such as their
respective Quarterly Reports on Form 10-Q and Annual Reports on
Form 10-K, any of which could cause actual results to differ
materially from the forward-looking statements contained herein.
Forward-looking statements reflect Bally’s management’s analysis as
of the date of this release. Bally does not undertake to revise
these statements to reflect subsequent developments, except as
required under the federal securities laws. Readers are cautioned
not to place undue reliance on any of these forward-looking
statements.
— BALLY TECHNOLOGIES, INC. —
Bally Technologies, Inc.Laura Olson-Reyes, 702-584-7742Senior
Director, Marketing & Corporate
CommunicationsLolson-reyes@ballytech.comMichael Carlotti,
702-584-7995Vice President of Treasury and Investor
Relationsmcarlotti@ballytech.comMike Trask, 702-584-7451Mobile:
702-330-6679Corporate Communications
ManagerMTrask@ballytech.com
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