Fertitta Entertainment -- the owner of the Houston Rockets founded by businessman Tilman Fertitta -- has agreed to purchase Caesars Entertainment in a deal that values the Las Vegas giant at $17.6 billion.
The transaction will see Fertitta pay $5.7 billion in cash and take on approximately $11.9 billion in Caesars' outstanding debt. The Caesars board of directors approved the sale and has recommended its shareholders do the same.
If the acquisition goes through, Caesars will be taken private and shareholders will receive $31 per outstanding share, a 49% premium over Caesars' unaffected share price on Feb. 25, the last trading day before rumors of a potential transaction first emerged.
Under the terms of the deal, Caesars can shop around for another buyer until July 11.
"Fertitta Entertainment's agreement to acquire Caesars Entertainment brings together two of the world's premier hospitality and gaming companies, each with deep roots in exceptional guest experiences and industry-leading loyalty programs," Fertitta said in its statement. "Caesars is one of the leading casino entertainment companies in the United States... Fertitta Entertainment brings a proven operating model and a decades-long track record of successfully integrating and growing market-leading hospitality and entertainment businesses."
Fertitta has had a presence in the betting world through its ownership of Golden Nugget Casinos, which has locations across the United States, including in downtown Las Vegas. Fertitta's acquisition of Caesars gets the company on The Strip.
