Long/short equity, event-driven, portfolio strategy, industrials

Is Scientific Games Getting A Good Deal By Acquiring Bally Technologies?

Note: The all the data, charts and figures in this article come from Investor Relations websites of Scientific Games and Bally. Furthermore, Bally's annual report was utilized for the annual financials.

Scientific Games (NASDAQ:SGMS) recently announced that it acquired Bally Technologies (NYSE:BYI) for a transaction value of $5.1 billion including the net debt position of Bally Technologies valued at $1.8 billion. This was an interesting move, considering the fact that Bally Technologies has a much larger market cap than Scientific Games, as the former company's market cap is $3.1 billion and the latter's market cap is a mere $739 million. It is not very common to see an acquisition where acquirer has a much smaller...

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