Global Cash Access announced last month that it completed the acquisition of Multimedia Games Holding Company, Inc., creating a diverse organization that will leverage cash access and compliance solutions with leading slot gaming experiences to enhance the full enterprise value proposition to casino operators, according to the GCA press release.
“Today marks a great milestone as two organizations, with differentiated product and service offerings, unite to create a full-service solution for casino operators to optimize cash-to-the-floor solutions with player-proven slot gaming products that focus on retaining and acquiring new casino players,” said Ram V. Chary, chief executive officer and president of GCA. “Much has been accomplished by many people in enabling this transaction to close, and now we are excited to begin merging two passionate employee cultures into one powerful organization focused on customer service, operational efficiency and gaming innovation.”
GCA has over 300 licenses worldwide, providing access for MGAM to many new jurisdictions. Multimedia had only around 100 licenses.
Multimedia Games stockholders will receive $36.50 per share in cash from Global Cash Access. The price is a 31 percent premium to the company’s September 5 closing price. The total cost of the deal for GCA was $1.2 billion. The deal also includes PokerTek, an electronic table game company, purchased by Multimedia Games last year for $13 million.
The company will remain headquartered in Las Vegas, and will continue to leverage MGAM’s existing technology and manufacturing facilities in Austin, Texas.