Global Cash Access to buy Multimedia Games for $1.2 billion

Global Cash Access Holdings, which provides money transaction technology, said it plans to acquire Multimedia Games Holdings for about $1.2 billion in the latest merger in the fast-consolidating gaming suppliers sector.The deal values Multimedia at $36.50 a share, a 31 percent premium to the company’s closing price before the deal was announced.GCA provides casino customers access to cash through ATMs, point-of-sale and debit-card transactions, and offers slot-machine ticket redemption and jackpot kiosks.Multimedia, which is based in Austin, Texas, is a creator and supplier of systems, content and electronic gambling units, and had 205 gaming licenses in 29 U.S. states, according to its most recent annual filing of September 2013.Bloomberg quoted Matt Kempler, an analyst at Sidoti & Co. in New York as saying: “It’s a space that’s been consolidating, and this is one of the better assets in my view, You’re going to see bigger scale. Both companies service casino floors, so you’ll have a network of service.”The acquisition of Multimedia Games uniquely positions GCA as an important strategic partner to gaming operators, Global Cash Chief Executive Ram Chary said in announcing the deal.The GCA/Multimedia deal is estimated to generate about $800 million in revenues on a pro-forma basis. 

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