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Scientific Games Closes Up 7% As Industry Consolidation Continues

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Scientific Games Corp. (NASDAQ: 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 (NYSE: GCA) said late Friday it would buy slot-machine supplier Multimedia Games Holding Co. (NASDAQ: 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. (NYSE: IGT) by GTECH S.p.A., (OTC: GTKYY).

Scientific Games, which sells instant-ticketing systems and gaming software, itself has a deal pending to acquire the much larger Bally Technologies Inc. (NYSE: 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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