Bally Technologies Inc. (NYSE: BYI) is buying SHFL Entertainment Inc. (Nasdaq: SHFL) for about $1.3 billion.

The purchase price works out to $23.35 per share in cash.

SHFL Entertainment, headquartered in Las Vegas, is a gaming supplier that supplies utility products, such as automatic card shuffler, table games and electronic table systems and gaming machines, including for blackjack and roulette.

Las Vegas-based Bally designs, manufactures, distributes and operates gaming devices and computerized monitoring, accounting and player-tracking systems for gaming devices. The company's games include Sorcerer's Secret, Rise of Ra and Cash Spin Multi Spin 1 Line. 

Macquarie Capital was SHFL’s financial adviser, while Skadden Arps Slate Meagher & Flom LLP served as legal counsel.

Goldman Sachs & Co. (NYSE: GS) and Groton Partners served as Bally’s financial advisers, and Gibson Dunn & Crutcher LLP provided legal advice.

Wells Fargo Bank, JP Morgan Chase Bank NA, Bank of America Merrill Lynch, Goldman Sachs Bank USA and Union Bank NA provided the financing for the deal. 

The deal comes as the gaming industry—dependent on upswings in business cycles and discretionary spending—makes a slow climb back to profitability after the economic downturn, leading to more M&A. For more, see “The Buyside: Pinnacle Deal Signifies Gaming Comeback.” 

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