(Bloomberg) — Scientific Games Corp. agreed to buy Bally Technologies Inc. for about $5.1 billion, including debt, combining the two makers of slot machines and lottery games.

Scientific Games will pay $83.30 in cash per Bally common shares, the companies said in a statement today, a premium of 38 percent over Bally’s closing price yesterday.

The industry has been consolidating in the past years. Bally, based in Las Vegas, bought SHFL Entertainment Inc. for $1.3 billion last year, and Scientific Games itself purchased WMS Industries Inc. for about $1.5 billion. Scientific Games, which is controlled by billionaire Ronald Perelman, appointed former SHFL Entertainment Chief Executive Officer Gavin Isaacs as its CEO in June.

The companies anticipate $220 million in annual cost savings and $25 million in annual capital-expenditure savings by consolidating operations and generating efficiencies in the areas of manufacturing, engineering, field and customer service and administrative operations.

The deal, which includes net debt of $1.8 billion, will immediately add to Scientific Games’s earnings per share, according to the statement.

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