MGM Resorts is acquiring Boyd Gaming’s 50% share of the Borgata Resort in Atlantic City for $900 million.
The two companies announced the agreement for the 2,802-room property which had been run as a joint venture.
The Borgata is the largest hotel in New Jersey.
The deal includes the Borgata casino and hotel, and the adjacent Water Club hotel, with an expected completion date by the end of the third quarter of 2016.
Boyd will get $600 million up front plus a share of property tax refunds owed to Borgata by the state.
"Borgata is the premier resort in Atlantic City and a great addition to our growing presence in the Northeast," Jim Murren, chairman and CEO of MGM Resorts International, said in a statement.
"While the market continues to experience challenges, Borgata has outperformed and differentiated itself as the undisputed leader in the city. Our decade-long partnership with Boyd Gaming has been a great one."
MGM plans to lease back the property to a subsidiary to operate
Boyd Gaming CEO Keith Smith said the company will use the proceeds to reduce its debt.
