Dave & Buster’s Entertainment Inc. announced Wednesday a deal to buy family entertainment concept Main Event for $835 million in cash from Ardent Leisure Group Ltd. and Redbird Capital Partners. Dave & Buster’s stock was still inactive in premarket trading. The deal is expected to restaurant and games chain said the deal is expected to close “later this year.” Once the deal closes, Main Event Chief Executive Chris Morris will be named CEO of Dave & Buster’s, who is currently being run by interim CEO Kevin Sheehan since October. Dave & Buster’s expects the acquisition to add to both earnings and growth, and to achieve cost synergies of $20 million within the first two years. “From a strategic fit perspective, Main Event’s business model, footprint and asset quality aligns well with Dave & Buster’s,” Sheehan said. “Main Event targets a different demographic, families with younger children, while Dave & Buster’s has primarily targeted young adults.” Dave & Buster’s stock has run up 20.8% year to date, while the S&P 500 has lost 5.1%.
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