Global Cash Access Holdings of Las Vegas announced Monday plans to buy Austin-based Multimedia Games Holding Co. for $1.2 billion in cash.
Global Cash has agreed to acquire all outstanding common stock of Multimedia Games for $36.50 per share, 31 premium from the stock’s close on Sept. 5. The news sent Multimedia Games’ stock which trades on the Nasdaq Exchange, under the symbol “MGAM” soaring to close at $36.15 on Monday, up 30 percent from Friday.
The deal is subject to stockholder and regulatory approval and is expected to close early in 2015.
“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 Officer of GCA said in a news statement. “This acquisition further strengthens and broadens GCA’s portfolio of solutions, which has been embraced by our customer base.”
The combined company’s headquarters will remain in Las Vegas, and its game development operations will be based in Austin.