Last week, Global Cash Access, the renowned provider of various casino cash products, announced that it was another step closer to the acquisition of Multimedia Games, Inc., a Texas-based manufacturer of a wide range of slot machines. The purchase is estimated to cost about $1.2 billion.
All members of the Nevada State Gaming Control Board recommended that the deal should be approved during a hearing, held in Carson City. And the Nevada State Gaming Commission will announce its final decision on December 18.
It appears that getting the approval of the local regulatory body is the last step before the deal is inked. As it was previously announced, Global Cash stated its intentions to buy Multimedia Games on September 8.
Members of the Control Board shared that the transaction was “well-structured” and “well-financed” and it will be quite beneficial to Nevada’s gaming market.
Global Cash Access provides numerous casinos with its ATMs as well as with slot-machine ticket redemption and other related products. Annually, the company processes more than 90 million transactions, totaling $19 billion.
The merger between Global Cash and Multimedia Games will bring numerous benefits to both companies. The first will expand its catalog of products, while the latter will enter various new markets.
Ram Chary, CEO of Global Cash, stated that money will always be an indispensable part of gaming industry. This is why his company is constantly looking for new ways to help gambling venues distribute cash in a proper manner. What is more, he believes that the slot machine business will need to develop its products, so as to make its products more attractive to younger people.
Mr. Chary also stated that Global Cash will not move its headquarters from Las Vegas and its new game design division will still be based in Austin. In addition, he shared that there will be certain job reductions, but they will be quite insignificant.
The merger between the two companies will bring them cost savings, amounting to more than $35 million.
Currently, Global Cash Access owns over 300 licenses around the world and Multimedia Games owns less than 100 licenses. It was awarded a Nevada license towards the end of 2012.
It was announced that Global Cash Access will pay the amount of $36.50 per share to Multimedia Games’ shareholders.
Back in 2010, the Austin-based company almost got closed but it refocused its business and acquired new licenses across the country. Due to this, its stock price has multiplied ten times.
Earlier this year, Multimedia Games purchased PokerTek, paying $13 million for it. Its new acquisition is known for its PokerPro electronic tables, distributed to several countries and even cruise ships.
