Video casino gaming company Bally Technologies (NYSE: BYI) has announced plans to acquire fellow gaming business SHFL Entertainment (NASDAQ: SHFL) for approximately $1.3 billion, or $23.25 per share. The merger includes SHFL's $8 million worth of debt and $41 million in cash and is subject to a vote by SHFL's shareholders.

The new agreement will help Bally broaden its current product portfolio and will also extend its hold within the growing online table games and e-tables markets.

Bally's president and chief executive officer, Ramesh Srinivasan, believes the acquisition of SHFL "joins two high-caliber, talented, and creative teams."

On the day of the announcement, Bally's stock price rose from $64.82 to $65.13, while SHFL's price per share peaked at $22.86 and dropped slightly to $22.81.

 

Fool contributor Caroline Bennett and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.