Scientific Games Corp. SGMS closed up Monday more than 7 percent as traders digested news that a rival company will be acquired for $1.2 billion in cash.
Casino services provider Global Cash Access GCA said late Friday it would buy slot-machine supplier Multimedia Games Holding Co. MGAM $36.50 a share in cash.
The gaming equipment sector has seen a wave of consolidation recently, including the $6.4 billion July acquisition of International Game Technology Inc. IGT by GTECH S.p.A., GTKYY.
Scientific Games, which sells instant-ticketing systems and gaming software, itself has a deal pending to acquire the much larger Bally Technologies Inc. BYI for $5.1 billion or $83.30 a share in cash. The deal is expected to close in 2015.
Last year Scientific acquired slot-machine maker WMS while Bally bought SHFL Entertainment, a shuffle machine and table game company.
Scientific closed Monday at $12.88 a share, up $0.86.
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