Scientific Games to buy WMS Industries for $1.42 billion

(Reuters) - Scientific Games Corp , which makes tickets and software for lotteries, said it would acquire rival WMS Industries Inc for about $1.42 billion to beef up its gaming machines business.

Scientific Games will pay $26.00 for each WMS common share, a 59 percent premium to the stock's closing price of $16.37 on the New York Stock Exchange on Wednesday.

WMS shares rose 54 percent to $25.25 in premarket trade on Thursday.

The deal, which includes debt of $85 million and cash on hand of $55 million, will immediately add to earnings per share and free cash flow, Scientific Games said.

WMS Industries, which competes with Bally Technologies Inc , manufactures and distributes games, video and mechanical reel-spinning gaming machines and video lottery terminals.

BofA Merrill Lynch and Credit Suisse Securities LLC advised Scientific Games on the deal, while Cleary Gottlieb Steen & Hamilton LLP was the legal adviser.

Macquarie Capital advised WMS on the deal.

Scientific Games shares closed at $8.93 on the Nasdaq on Wednesday.

(Reporting by Chris Peters in Bangalore; Editing by Sriraj Kalluvila)

Source: http://news.yahoo.com/scientific-games-buy-wms-industries-1-5-billion-124255555--sector.html

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