Scientific Games is to buy Bally Technologies for about $5.1 billion (€3.8bn), including debt, combining the two makers of slot machines and lottery games.

Scientific Games employs 40 people in its Co Longford service centre which is responsible for all international lottery and racing services business conducted on behalf of Scientific Games Corporation outside the USA, including software, hardware, point-of-sale terminals and continuing support. It reported revenues of €50 million in the year to December 2013, according to Top1000.ie

The company will pay $83.30 in cash per Bally common shares, the companies said in a statement today, a premium of 38 per cent over Bally’s closing price yesterday. The industry has been consolidating in the past years. Bally, based in Las Vegas, bought SHFL Entertainment Inc. for $1.3 billion last year, and Scientific Games itself purchased WMS Industries Inc. for about $1.5 billion.

Scientific Games, which is controlled by billionaire Ronald Perelman, appointed former SHFL Entertainment chief executive officer Gavin Isaacs as its chief executive in June. The companies anticipate $220 million in annual cost savings and $25 million in annual capital expenditure savings by consolidating operations and generating efficiencies in the areas of manufacturing, engineering, field and customer service and administrative operations. The deal, which includes net debt of $1.8 billion, will immediately add to Scientific Games's earnings per share, according to the statement.

Bloomberg