"Like SHFL, Bally focuses on creating both entertaining player experiences through high-performing content and state-of-the-art technological solutions to increase productivity on the casino floor. United, we become a larger, stronger organization that we believe will best position the company for future growth."
The transaction expected to provide accretion to diluted earnings per share and free cash flow in the first twelve months after closingBally will acquire all of the outstanding shares of SHFL for a per share price of $23.25 in cash, representing a total enterprise value of ~$1.3 billion, including debt of $8 million and cash of $41 million as of April 30, 2013.
Based on the respective trailing 12-month periods ended March 31, 2013 for Bally and April 30, 2013 for SHFL, the combined company generated ~$1.3 bln in revenues, $644 mln of which are recurring in nature, and Adjusted EBITDA of $415 million. In addition, once combined, the Company expects to achieve synergies of at least $30 mln. The transaction is subject to approval by SHFL's shareholders, required regulatory and other approvals and customary closing conditions. The transaction is expected to close by the second quarter of calendar year 2014.
BYI Guidance: The Company initiates fiscal 2014 guidance for Diluted EPS of $3.70 to $4.05, which is in line with expectations. This guidance does not reflect the impact from the acquisition of SHFL or any acquisition-related costs or savings. More detailed information regarding fiscal 2014 guidance will be provided on the Company's upcoming fourth quarter fiscal 2013 earnings call on August 15, 2013.