Bally Tech. To Buy SHFL Entertainment For About $1.3 Bln - Quick Facts

(RTTNews) - Bally Technologies, Inc. (BYI) has agreed to acquire SHFL entertainment, Inc. (SHFL) for $23.25 per share cash, representing a total enterprise value of nearly $1.3 billion, including debt of $8 million and cash of $41 million as of April 30, 2013. This consideration represents a premium of 24 percent to the closing price of SHFL stock on July 15, 2013.

The acquisition is anticipated to provide accretion to diluted earnings per share and free cash flow in the first year after completion. The deal may close by the second quarter of calendar year 2014. Bally said it has obtained committed financing to complete the purchase and the transaction is not subject to a financing contingency.

Based on the respective trailing 12-month periods ended March 31, 2013 for Bally and April 30, 2013 for SHFL, the combined company generated about $1.3 billion in revenues, $644 million of which are recurring in nature, and adjusted EBITDA of $415 million. Once combined, the company expects to achieve synergies of at least $30 million.

In addition, Bally Technologies provides fiscal 2014 earnings per share guidance of $3.70 - $4.05, not reflecting the impact from the acquisition of SHFL or any acquisition-related costs or savings. On average, 15 analysts polled by Thomson Reuters expect earnings per share of $3.85 for the year. Analysts' estimates typically exclude one-time items.