Scientific Games strikes $3.3B deal to buy Bally

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Scientific Games strikes $3.3B deal to buy Bally
FILE - In this June 6, 2007 file photo, Bally Technologies slot machines are showcased at the Palms hotel-casino in Las Vegas. Scientific Games on Friday, Aug. 1, 2014 said it will pay about $3.3 billion to buy slot machine maker Bally Technologies in a cash deal that expands its casino management system portfolio. (AP Photo/Jae C. Hong, File)
LAS VEGAS, NV - JUNE 26: Casino patron Manuel Guzman of California plays the slot machine, 'The Magic of David Copperfield,' by Bally Technologies at the MGM Grand Hotel/Casino on June 26, 2014 in Las Vegas, Nevada. (Photo by David Becker/Getty Images)
LAS VEGAS, NV - JUNE 26: Casino patron Manuel Guzman of California plays the slot machine, 'The Magic of David Copperfield,' by Bally Technologies at the MGM Grand Hotel/Casino on June 26, 2014 in Las Vegas, Nevada. (Photo by David Becker/Getty Images)
LAS VEGAS, NV - JUNE 26: A general view is seen of the video screen from the slot machine, 'The Magic of David Copperfield,' by Bally Technologies at the MGM Grand Hotel/Casino on June 26, 2014 in Las Vegas, Nevada. (Photo by David Becker/Getty Images)
LAS VEGAS, NV - JUNE 26: Magician David Copperfield appears with a new slot machine, 'The Magic of David Copperfield,' by Bally Technologies during the unveiling at the MGM Grand Hotel/Casino on June 26, 2014 in Las Vegas, Nevada. (Photo by David Becker/Getty Images)
LAS VEGAS, NV - JUNE 26: A general view is seen of the video screen from the slot machine, 'The Magic of David Copperfield,' by Bally Technologies at the MGM Grand Hotel/Casino on June 26, 2014 in Las Vegas, Nevada. (Photo by David Becker/Getty Images)
Dick Haddrill, CEO and Director, Bally Technologies, Inc., left speaks with Patti Hart, CEO International Game Technology during a panel discussion at the Global Gaming Expo on Wednesday, Oct. 3, 2012, in Las Vegas. (AP Photo/Isaac Brekken)
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NEW YORK (AP) - Scientific Games plans to pay about $3.3 billion to buy Bally Technologies in a deal that would combine makers of gambling equipment ranging from slot machines to instant-win lottery games.

The electronic gambling machine maker said Friday that it will pay $83.30 for each share of Bally. That amounts to a 38 percent premium to Bally's closing price of $60.17 on Thursday.

The deal value totals $5.1 billion counting about $1.8 billion in Bally debt.

The companies expect the transaction to close early next year, but it still needs approval from Bally shareholders and antitrust and gambling regulators.

The boards of both companies have already approved it.

Bally Technologies Inc. was founded during the Great Depression and started as a pinball maker. It makes reel-spinning and video slots and casino management and accounting systems.

Scientific Games Corp. sells instant-win lottery games and sports betting technology. It said the deal also will add table products like automatic shufflers and proprietary table games to its portfolio.

Bally CEO Richard Haddrill and Chairman David Robbins are expected to join the Scientific Games board after the deal closes.

Both companies completed sizeable acquisitions last fall. Scientific Games closed a $1.42 billion deal to buy gambling equipment company WMS Industries Inc. Las Vegas-based Bally finished its acquisition of rival casino device company SHFL Entertainment Inc., a deal valued at $1.3 billion including debt.

Bally shares jumped nearly 34 percent, or $20.33, to $80.50 Friday morning after the deal was announced and more than an hour before markets opened. Scientific Games stock also climbed more than 16 percent, or $1.43, to $9.97.

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