Scientific Games completed its $5.1 billion acquisition of slot machine provider Bally Technologies, Inc. on Friday.
On Thursday, New York-based lottery system and equipment providers Scientific Games Corp. received a unanimously final regulatory approval from the Nevada Gaming Commission for the merger with Bally Technologies Inc.
Following the approval, the company announced that it was expected to complete the Bally Technologies merger on the following day (November 21).
Las Vegas-based Bally, considered the largest gaming equipment provider based on market share, will become a wholly owned subsidiary of Scientific Games—one the world’s largest lottery system and equipment providers.
In 2013, Scientific Games bought slot machine maker WMS Industries for $1.5 billion. Bally had purchased table gaming provider SHFL entertainment for $1.3 billion. All four companies are now under the auspices of Scientific Games Corporation.
Scientific Games is paying $83.30 per share to acquire all outstanding shares of Bally, valued at $3.3 billion. The lottery company is assuming $1.8 billion in debt.
Scientific Games finalized the buyout in less than four months, pricing out $3.15 billion of debt to be used in the transaction. In October, the company said it raised $2 billion for the merger.
“Completing the Bally transaction brings together two exceptional organizations with a common culture of innovation and customer focus,” Scientific Games CEO Gavin Isaacs said in a statement. “We are excited by the opportunities that will be created by combining each organization’s core strengths in developing engaging gaming entertainment products.”
The transaction is expected to create $235 million in cost savings. Isaacs hopes much of those savings will be achieved in the first year of the deal. The combined companies are expected to produce $3 billion in annual revenue.
New Executive Leadership Team Appointed
Isaacs also announced a new executive management structure for the company, touching all aspects of legalized gambling — lotteries, slot machines, table games, casino and lottery management systems and interactive gaming.
In addition to President and Chief Executive Officer Gavin Isaacs and Executive Vice President and Chief Financial Officer, Scott Schweinfurth, the executive leadership team of Scientific Games includes:
Derik Mooberry, formerly senior vice president of games, table game products and interactive research and development at Bally Technologies, is to be group chief executive for gaming at Scientific Games.
Jordan Levin, previously chief operating officer of Williams Interactive, a subsidiary of WMS Industries, is to be president for interactive, in the new business.
James Kennedy, formerly president for printed products and chief marketing officer of Scientific Games, is to be group chief executive for lottery.
“Our new senior management team comprises some of the most accomplished executives in the gaming, lottery and interactive industries. I am very excited to have this team of great leaders from Scientific Games, WMS, Bally and SHFL entertainment, Inc. helping to lead the Company forward,” Isaac commented.