MGM Resorts will acquire Boyd Gaming Corporation’s 50 percent stake in Borgata Hotel Casino & Spa in Atlantic City, New Jersey for $900 million.

Upon completion of the acquisition, MGM Resorts will sell all of Borgata’s real property to MGM Growth Properties for approximately $1.175 billion. The real property will be leased back to a subsidiary of MGM Resorts, which will operate Borgata.

After consideration of Borgata’s outstanding debt of approximately $600 million, MGM Resorts will pay approximately $600 million for Boyd Gaming’s 50 percent interest, which MGM Resorts will assume and refinance.

“Borgata is the premier resort in Atlantic City and a great addition to our growing presence in the Northeast. While the market continues to experience challenges, Borgata has outperformed and differentiated itself as the undisputed leader in the city,” said Jim Murren, Chairman and CEO of MGM Resorts International. “Our decade-long partnership with Boyd Gaming has been a great one, and Borgata’s talented employee base will complement and strengthen our more than 60,000-member worldwide MGM Resorts team.”

“We are excited to add Borgata to the MGM Growth Properties portfolio, further diversifying our geographic presence. With this transaction, we are executing on our core growth strategy in prudently building a portfolio of high-quality assets with market leading competitive positions,” said James Stewart, CEO of MGM Growth Properties.

“The transactions provide numerous benefits to MGM Resorts and creates significant value for our shareholders,” said Dan D’Arrigo, Executive Vice President and CFO of MGM Resorts International.

The transactions are expected to close in the third quarter of 2016, subject to regulatory approvals and other customary closing conditions.