Multimedia Games to be acquired by Global Cash Access (GCA) for $36.50/share in cash (31% premium); GCA sees deal immediately accretive
GCA will acquire all of the outstanding stock of Multimedia Games for $36.50 per share in cash, representing a 31% premium to the closing stock price as of Friday, Sept 5, 2014, for an aggregate purchase price of ~$1.2 billion. The proposed acquisition will be financed with debt and cash on hand for which GCA has secured committed debt financing. The proposed acquisition is subject to customary closing conditions, including receipt of MGAM shareholder approval and antitrust and gaming regulatory approvals, and is currently expected to be completed in early 2015.
- The merger is expected to achieve ~$30 million of synergies as a combined entity; and, on a pro forma basis, is estimated to generate about $800 million in revenues and ~$217 million in Adjusted EBITDA based on the last twelve months results as of June 30, 2014.
- The transaction is expected to be immediately accretive to GCA stockholders as of the closing date of the acquisition. Ram V. Chary will continue to serve as President and Chief Executive Officer of GCA.