Multimedia Games to be acquired for $1.2B by Las Vegas company

Sep 8, 2014
Austin Business Journal

Shares of Multimedia Games Holding Co. Inc. surged more than 28 percent to $35.75 in premarket trading Monday after the Austin-based company announced that it agreed to be acquired by Global Cash Access Holdings Inc. for $1.2 billion

Las Vegas-based Global Cash Access Holdings plans to acquire all the outstanding common stock of Multimedia Games for $36.50 per share, a 31-percent premium over the Friday closing price of $27.78

The transaction, expected to close by early 2015, has been unanimously approved by the boards of directors of both companies, according to a Monday filing with the U.S. Securities and Exchange Commission. The merger is subject to approval by Multimedia Games shareholders

Multimedia Games, founded in 1987, develops video casino slot machine games. It employs 470 workers. GCA makes ATMs and cash-advance kiosks

In July, Multimedia Games posted third-quarter earnings of 25 cents per share, missing Wall Street estimates of 31 cents, and revenue of $50.3 million, short of the street’s expectations of $53 million. During the same period last year, the company reported earnings of 28 cents per share and revenue of $48.1 million

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