Nevada regulators approve Bally Technologies-SHFL Entertainment merger in just over an hour
In a special hearing conducted on Thursday, gaming regulators in Nevada had given their approval of Bally Technologies acquiring its gaming equipment rival SHFL Entertainment for USD1.3 billion. The decision was reportedly done in a little more than an hour. Earlier on Wednesday, stockholders had given their approval of the USD23.25 per share offer of Bally. The consolidation was expected to create a technology and manufacturing company that is set to generate annual revenues of over USD1.3 billion.
Bally Technologies manufactures gaming technology that includes slot machines. The company was established in 1968 as an Advanced Patent Technology company. Bally has 1,300 people employed for its operations in Nevada.
SHFL Entertainment, on the other hand, also manufactures slot machines, table games, shuffling machines and other casino products. SHFL has a staff of 350 people in Nevada, but has a total of 900 workers in offices across the globe.
The Gaming Control Board had given its positive recommendation regarding the merger, which was followed by another approval from the Nevada Gaming Commission. The five-person gaming commission panel was from the audience during an investigative hearing about the merger. The commissioners reportedly did not have any questions regarding the transaction.
Gaming Commission Chairman Pete Bernhard said questions that rose from the deal had bee sufficiently answered and that the acquisition deal was vetted.
According to Bally Technologies Chief Executive Officer Ramesh Srinivasan, the buyout offer of Bally was an 11-time multiple of SHFL's cash flow in the past 12 months. "It's a complementary merger. This will be a very profitable entity. We will take care of these two great companies," Srinivasan said.
The merger of Bally and SHFL might have overcome one regulatory hurdle, but it was still awaiting several regulatory approvals. The deal announced in July this year was expected to be finalized before the end of the year.