Global Cash to buy Multimedia Games for $1.2B

NEW YORK (AP) — Global Cash Access Holdings is getting into the casino gaming business, spending about $1.2 billion to buy Multimedia Games Holdings.

Both companies make machines found on casino floors. GCA makes ATMs and cash-advance kiosks, while Austin, Texas-based Multimedia Games makes video slot machines.

GCA, based in Las Vegas, is paying $36.50 for each share of Multimedia Games. That's a 31 percent premium from Multimedia Games' closing price of $27.78 on Friday.

The deal is expected to close early next year.

The combined company is estimated to generate revenue of about $800 million in a year and approximately $217 million in earnings before interest, taxes, depreciation and amortization.

After the deal was announced, shares of Multimedia Games Holding Co. soared nearly 29 percent in premarket trading Monday. GCA shares rose 7 percent.