NEW YORK (AP) — Global Cash Access Holdings is getting into the casino gaming business, spending about $1.2 billion to buy Multimedia Games Holdings.
Both companies make machines found on casino floors. GCA makes ATMs and cash-advance kiosks, while Austin, Texas-based Multimedia Games makes video slot machines.
GCA, based in Las Vegas, is paying $36.50 for each share of Multimedia Games. That's a 31 percent premium from Multimedia Games' closing price of $27.78 on Friday.
The deal is expected to close early next year.
The combined company is estimated to generate revenue of about $800 million in a year and approximately $217 million in earnings before interest, taxes, depreciation and amortization.
GCA shares rose 19 cents, or 2.5 percent, to $7.71 in morning trading Monday. Shares of Multimedia Games Holding Co. jumped $8.05, or 29 percent, to $35.83.