• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Global Cash Access to acquire Multimedia Games

Sep 10, 2014 Newsdesk Industry Talk, Latest News, Top of the deck  


Global Cash Access to acquire Multimedia Games

Las Vegas-based Global Cash Access Holdings Inc announced on Monday it is acquiring Multimedia Games Holding Co Inc for US$1.2 billion in cash.

The New York-listed firm – also known as GCA and which supplies cash processing technology and related services to the gaming industry – said it has agreed to acquire all the outstanding common stock of Multimedia Games for US$36.50 per share, representing a 31 percent premium to the closing stock price as of September 5.

The proposed acquisition will be financed with debt and cash on hand. Bank of America Merrill Lynch and Deutsche Bank have agreed to provide debt financing to GCA for the deal, the firm said.

The boards of directors of GCA and Multimedia Games have unanimously approved the transaction.

Multimedia Games is a creator and supplier of systems, content and electronic gaming units for Native American and commercial casinos. The firm also supplies the central determinant system for the video lottery terminals installed at racetracks in the state of New York.

“The acquisition of Multimedia Games represents a gaming-relevant transformational opportunity to combine two companies with rich gaming heritages and uniquely positions GCA as an important strategic partner to gaming operators by offering them deeper and more integrated solutions across their entire gaming floor,” Ram V. Chary, president and chief executive of GCA, said in a statement.

Mr Chary will continue in post after the merger is completed. The combined company’s headquarters will remain in Las Vegas and its game development operations will be based in Austin, Texas, where Multimedia Games has its headquarters.

The acquisition, still subject to customary closing conditions, is expected to be completed in early 2015.

Cost savings

GCA said the merger is expected to achieve “approximately US$30 million of synergies” – management speak for cost savings.

On a pro forma basis, the new entity is estimated to generate about US$800 million in revenues and approximately US$217 million in adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) based on the results for the year ended June 30.

Merger and acquisition activity on the gaming supplier industry has spiked in the last few months, with the announcement of several deals.

Italian lottery supplier GTech SpA is acquiring U.S.-based supplier International Game Technology for US$6.4 billion. Lottery equipment specialist Scientific Games Corp is buying Bally Technologies Inc in a US$5.1 billion leveraged deal.

U.S.-based JCM Innovation Corp last week said it has finalised the acquisition of FutureLogic Inc for US$70.6 million, excluding advisory fees. Other deals include the acquisition of US-based Video Gaming Technologies Inc by Australian gaming supplier Aristocrat Leisure Ltd.

“While we have anticipated ongoing consolidation in the equipment space given recent activity for Bally Technologies and IGT, the take-out of Multimedia Games by GCA in particular was not expected,” Union Gaming Research LLC wrote in a note.

It explained: “GCA’s core business is on the cash access, credit and payment solutions side of gaming, not in gaming technology development and distribution.”

The Union Gaming analysts added they would not consider “beyond the realm of possibility” the potential for another, more pure-play firm within the equipment space to step in with a competitive bid.

“With slow/no organic growth, and Multimedia Games clearly open to this take-out offer, it could therefore potentially be perceived as making ‘more sense’ for an existing equipment company actively seeking revenue synergy as well as cost synergy opportunities,” Union Gaming noted.


  • tweet
Related articles
  • Industry, investor horror at Okada Manila events: Ader
    Industry, investor horror at Okada...

    Jun 14, 2022  

  • Western Australia regulator nods Blackstone-Crown deal
    Western Australia regulator nods...

    Jun 10, 2022  

More news
  • Maybe new Macau mass Covid test, community spread still
    Maybe new Macau mass Covid test,...

    Jun 24, 2022  

  • Blackstone clinches US$6.15bln takeover of Crown Resorts
    Blackstone clinches US$6.15bln takeover...

    Jun 24, 2022  


Latest News

Maybe new Macau mass Covid test, community spread still

Maybe new Macau mass Covid test, community spread still

Jun 24, 2022  

It is likely that Macau will shortly have a third round of citywide centre-based Covid-19 testing in little more than a week, after the results so far of a second mass test – that was due to finish...
Read More
Blackstone clinches US$6.15bln takeover of Crown Resorts

Blackstone clinches US$6.15bln takeover of Crown Resorts

Jun 24, 2022  

Jeju still studying online gaming for its casinos: govt

Jeju still studying online gaming for its casinos: govt

Jun 24, 2022  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


US$5.8 million

Amount that each Macau casino operator paid for the circa six-month extension of their respective contract



Most Popular

  • Okada Manila control dispute back in court: UniversalOkada Manila control dispute back in court: Universal June 22, 2022
  • Macau ops sign contract extension, eye fresh public tenderMacau ops sign contract extension, eye fresh public tender June 23, 2022
  • Macau gaming ops contract rollover signed today: CEMacau gaming ops contract rollover signed today: CE June 23, 2022
  • Macau shuts leisure sites amid Covid, casinos can still runMacau shuts leisure sites amid Covid, casinos can still run June 23, 2022
  • Claimed US$3.5mln scam on Chinese, Daegu Casino: reportsClaimed US$3.5mln scam on Chinese, Daegu Casino: reports June 22, 2022
Copyright 2014-2022 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us