Bally completes $100m acquisition of social casino operator

Bally Technologies, Inc, a leader in gaming machines, table-game products, casino-management systems, has completed the acquisition of  online social casino company Dragonplay Ltd for $100m.

Launched in 2010, Dragonplay ranks among the 10 top-grossing game developers in the social casino genre with approximately 700,000 daily active users and nearly three million monthly active users across all platforms.

Total consideration includes approximately $51 million in upfront cash, plus the amount of net working capital, payable to Dragonplay’s shareholders in exchange for all of the issued and outstanding equity, and approximately $49 million in additional earn-out consideration and employee retention payments over the next 18 months subject to Dragonplay meeting certain financial performance targets.  Bally expects to fund the transaction from cash on hand and proceeds from its revolving credit facility.  For the 12 months ended March 31, 2014, Dragonplay generated over $10 million in EBITDA (earnings before interest, taxes, depreciation and amortization, including share-based compensation).