Global Cash Access announced last week that it completed the acquisition of Multimedia Games Holding Company, Inc. This transformational combination creates a uniquely diverse organization that will leverage cash access and compliance solutions with leading slot gaming experiences to enhance the full enterprise value proposition to casino operators, according to the GCA press release.
“Today marks a great milestone as two organizations, with differentiated product and service offerings, unite to create a full-service solution for casino operators to optimize cash-to-the-floor solutions with player-proven slot gaming products that focus on retaining and acquiring new casino players,” said Ram V. Chary, chief executive officer and president of GCA. “Much has been accomplished by many people in enabling this transaction to close, and now we are excited to begin merging two passionate employee cultures into one powerful organization focused on customer service, operational efficiency and gaming innovation.”
“This acquisition is unique in comparison to other recent transactions in the gaming industry,” Chary continued. “Our distinct businesses have very little operational duplication and our combined organization will establish an industry-leading model with respect to recurring revenue contribution. We are immediately focused on benefiting from revenue synergies that exist by leveraging Multimedia Games’ full product portfolio across our widely licensed footprint and existing customer relationships, while also executing on cost synergies that have already been identified.”
GCA has over 300 licenses worldwide, providing access for MM Games to many new jurisdictions. MM Games had only around 100 licenses.
Multimedia Games stockholders will receive $36.50 per share in cash from Global Cash Access. The price is a 31 percent premium to the company’s September 5 closing price. The total cost of the deal for GCA was $1.2 billion. The deal also includes PokerTek, an electronic table game company, purchased by Multimedia Games this year for $13 million.
The company will remain headquartered in Las Vegas, NV, and will continue to leverage MGAM’s existing technology and manufacturing facilities in Austin, Texas.
