The Global Cash Access Holdings has acquired all of Multimedia Holding Company’s shares for the overall amount of $1.2 billion or $36.5 per share. The acquisition has been mutually accepted by the boards of both companies.
The CEO of GCA said that this merger will improve GCA’s business portfolio and will allow them to become a major competitor in the gaming industry. He continued that now, GCA will be able to provide better services in all categories of games and raise value to its customer base.
More about the Deal
The finalization of the deal was completed on September 5, when GCA has paid a third of the amount in cash and ensured the rest with debt financing. The acquisition is expected to be finalized on paper in the early 2015, after the approval of MGAM shareholders and the consent of gaming regulation authorities. According to company estimations, the deal will bring over $800 million in profits based on the past twelve months.
The current CEO, Ram Chary, will remain on the same position at GCA. The headquarters of the two companies will be combined in Las Vegas. As for the game development team, it will be relocated in the city of Austin, Texas.
Both companies had expert consultants to help them with financial and legal advice. Merrill Lynch and Deutsche Bank have accepted the request for debt financing from Global Cash Access.
The GCA has scheduled a number of meetings with investors to talk over details of the transaction. The meetings are accessible live via a national or international dial for both local and international investors, the phone numbers can be found on GCA’s website. The outcome of the meetings will be available for replay until September 15, 2014.
About GCA
The Global Cash Access is the operator of integrated money access, mainly focused on servicing the gaming industry. The various services the company provides include cash withdrawals from ATMs, credit cards, POS debit cards, money transferring and warranty services. It also offers other cross-access cash devices for the gaming industry, such as jackpot terminals and slot machine ticket retrieval.
Other products are focused on easing and automating the decision making process of crediting and enhancing other cash flow activities for entertainment establishments. The company is also involved in internal and external auditing and data management, as well as online money transactions.
About MGHC – Multimedia Games Holding Company
Through its subsidiary, the Multimedia Games, MGHC creates and sells a great variety of gaming technology. It produces software and hardware components for slot machines and other electronic units, and covers both national and international markets. Profits come from selling the gaming units, maintenance, software development, licensing of game property and copyright, as well as revenue division.
