nder the terms of the agreement, which was approved by the Board of Directors of both companies, Isle of Capri Casinos will pay Bally Technologies us$ 80 million in an all-cash transaction, assuming the transaction closes by approximately June 30, 2010.
"We have enjoyed a successful, 16-year run owning and operating Rainbow Casino and have made a number of improvements to the facility which have enabled it to grow its business, even in a very competitive environment," said Richard Haddrill, Chief Executive Officer of Bally Technologies. "But we felt it was important that we focus on our core business of providing industry-leading games and systems technology, and we feel confident that under the ownership of Isle of Capri, Rainbow and its employees will be in very competent hands."
"We are pleased to return to the Vicksburg market and expand our presence in Mississippi through this transaction, which creates a mutually beneficial situation for Isle of Capri and for Bally Technologies and allows both of our companies to focus on what we do best," said James B. Perry Chairman and Chief Executive Officer of the St. Louis, Mo.-based Isle of Capri Casinos, Inc. "Rainbow is a successful property with a solid core business that will fit very well into the Isle portfolio and benefit from the operational expertise of our management team. Additionally, Bally has made important investments at the Rainbow facility and maintained a solid team of employees, who we look forward to welcoming to Isle of Capri." Perry noted that Isle plans to fund the transaction under its existing credit facility.
Rainbow Hotel Casino has approximately 350 employees, 2,322 sqm of gaming space, 831 slot machines, 10 table games, and an accompanying 89-room hotel.