Boyd Interactive Gaming, a subsidiary of Boyd Gaming Corporation (NYSE: BYD), is set to acquire online gaming technology company Pala Interactive and its subsidiaries in a deal that is said to further advance Boyd’s iGaming strategy, focusing on online betting and casinos.
Pursuant to the March 28 agreement, Boyd will acquire Pala Interactive for $170 million cash. The transaction will be financed with a mix of available cash and Boyd’s existing credit agreement.
According to the press release accompanying the deal, Pala Interactive “provides proprietary real-money and social gaming solutions on both a business-to-business (B2B) and business-to-consumers (B2C) basis in regulated markets across the United States and Canada.” The company currently operates in eight states.
Boyd Gaming is a gaming entertainment property operator, with 28 properties in 10 states. According to the release, it is a strategic partner and owns 5% equity in sports-betting and iGaming operator FanDuel Group.
“The acquisition of Pala Interactive marks the next phase in the ongoing execution of our iGaming strategy, providing us full control over the technology, development and customer experience,” Keith Smith, President and CEO of Boyd Gaming, said in a press release. “By integrating online casinos with our existing land-based operations, we will be able to further leverage and monetize our expansive customer database and the amenities of our nationwide portfolio of properties, driving growth in both our land-based and iGaming operations.”
The reverse triangular merger is expected to close by Q1 2023, pending customary closing conditions and regulatory approval.
Boyd Gaming is represented by Morrison & Foerster LLP and its financial advisor is Moelis & Company LLC.
Prior to the announcement, Boyd’s stock was valued at $69.01 on March 25. When the deal was announced on March 28, its stock was valued at $67.64. A week later on April 4, Boyd’s stock was valued at $66.64.
This acquisition follows Boyd’s acquisition of Lattner Entertainment Group Illinois in 2018 for $100 million as well as its acquisitions of Valley Forge Convention Center Partners and Ameristar Casino Kansas City in 2017 for $280.5 million and $575 million. These acquisitions added gaming machines and new locations to Boyd’s portfolio.
