Global Cash Access Holdings Inc, which provides cash services to casinos, said it would purchase slot machine maker Multimedia Games Holding Co Inc for about $1.2 billion to strengthen its gaming business.The offer price of $36.50 per share represents a premium of 31 percent to Multimedia's Friday closing. Multimedia Games' stock was trading at $36 before the bell on Monday."The acquisition of Multimedia Games ... uniquely positions GCA as an important strategic partner to gaming operators," Global Cash Chief Executive Ram Chary wrote in the statement.The deal will help Global Cash increase its gaming offerings to existing casino customers. Multimedia Games, based in Austin, Texas, makes slot machines and slot games such as "Patriot" and "Double Dash Money".
Global Cash Access Holdings, Inc. (Holdings) is a holding company. Shares of GCA remained unchanged at $7.52. In the past year, the shares have traded as low as $6.37 and as high as $10.42. On average, 420970 shares of GCA exchange hands on a given day and today's volume is recorded at 300.
Multimedia Games Holding Company, Inc. (Multimedia Games) is engaged in designing, manufacturing and supplying gaming machines and systems to commercial and Native American casino operators in North America, as well as, domestic and selected international lottery operators, and commercial bingo gaming facility operators. Shares of MGAM remained unchanged at $27.78. In the past year, the shares have traded as low as $23.37 and as high as $39.12. On average, 268786 shares of MGAM exchange hands on a given day and today's volume is recorded at 454978.
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