Bally Technologies has agreed to acquire the i-gaming software developer and table game manufacturer SHFL Entertainment, in a $1.3 billion deal that is still pending approval from the shareholders.

Ramesh Srinivasan, president and CEO of Bally commented that the acquisition will represent a transformation for both companies, which joins two high-caliber, talented and creative teams , enhancing their product and service delivery to their customers.

If the deal is approved it will become the third largest major gaming acquisition of 2013, and if so the legal process will be finished by the 2^nd quarter of 2014.

Srinivasan wrapped up the meeting by adding: Both Bally and SHFL have long histories of proven innovation, excellent customer service and successfully anticipating and adapting to changes within our industry, which makes bringing our two companies together a great strategic fit.

Growth non-stop

This year Bally Tech has added new online casino licensees like Mr Green to their list and has expanded across new markets in Asia and Europe for land-based and online casinos.

Bally Tech will pay the SHFL shareholders $23.25 per share (24% higher than SHFL’s closing price this week), and will also make do with the company’s current debt of $8 million. The deal includes a $41 million cash payment once the acquisition agreement is signed.

We like the deal

An analyst from Sterne Agee & Leach Inc., one of the largest brokerage companies in the world, also in charge of the acquisition, commented we like the deal as it will add 30 to 40 cents a share to Bally, and will enhance the company’s position in the global market.

SHFL, previously known as Shuffle Master Inc., was founded in Minnesota, USA back in 1983 and is a leader in electronic table game software and machinery development. Its products are used in most major land-based casinos around the world.

Surprisingly, this is one of the few deals within the i-gaming industry that takes place among two giants who are joining forces to develop new market strategies, and to expand their businesses by adding up video slot software and machinery from Bally with SHFL’s table games and back-end casino systems.