This is an archived article that was published on sltrib.com in 2014, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
New York • Global Cash Access Holdings is getting into the casino gaming business, spending about $1.2 billion to buy Multimedia Games Holdings.
Both companies make machines found on casino floors. GCA makes ATMs and cash-advance kiosks, while Austin, Texas-based Multimedia Games makes video slot machines.
GCA, based in Las Vegas, is paying $36.50 for each share of Multimedia Games. That's a 31 percent premium from Multimedia Games' closing price of $27.78 on Friday.
The deal is expected to close early next year.
The combined company is estimated to generate revenue of about $800 million in a year and approximately $217 million in earnings before interest, taxes, depreciation and amortization.
GCA shares rose 19 cents, or 2.5 percent, to $7.71 in morning trading Monday. Shares of Multimedia Games Holding Co. jumped $8.05, or 29 percent, to $35.83.