Two of the world’s most prominent hospitality and gaming companies are being combined into a single entity as Fertitta Entertainment Inc. announced its acquisition of Caesars Entertainment Inc. (NASDAQ: CZR) in a $17.6 billion all-cash transaction that includes the assumption of approximately $11.9 billion of Caesars’ outstanding debt.
Under the terms of the agreement, Caesars’ shareholders will receive $31.00 in cash for each outstanding Caesars’ share. The companies said their respective leadership teams are expected to remain in their current roles and continue to lead the combined companies’ operations. Upon completion of the transaction, shares of Caesars Entertainment common stock will no longer be listed on NASDAQ.
Houston-headquartered Fertitta Entertainment Inc. is Tilman and Paige Fertitta’s holding company for substantially all of their assets, which includes hotels, real estate, restaurants, entertainment venues and other investments, including the NBA’s Houston Rockets. Caesars is one of the leading casino entertainment companies, with eight locations on the Las Vegas Strip including the iconic Caesars Palace.
The acquisition agreement includes a “go-shop” period through approximately July 11, during which time Caesars and its financial and legal advisors may solicit, consider and negotiate alternative acquisition proposals from third parties. Prior to a vote of the shareholders of Caesars, the Caesars board of directors will have the right to cause the company to terminate the agreement to enter into an alternative transaction.
Photo: Julian Lupyan / Wikimedia Commons
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