Scientific Games Closes Up 7% As Industry Consolidation Continues

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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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