A flagship developer of land-based and digital games, Light & Wonder, and SciPlay Corporation, a leading developer and publisher of digital gaming content, have entered a definitive agreement for the Light & Wonder’s acquisition of the remaining 17% equity interest in SciPlay for $22.95 per share. Under the agreement, the acquisition of the 17% equity interest portion bringing SciPlay into the Light&Wonder’s full ownership will be conducted through an all-cash transaction already approved by the Board of Directors of Light & Wonder.
At the same time, the transaction has been determined by the SciPlay Special Committee consisting of the company’s independent directors as such that is in the best interest of the company’s shareholders. The company’s Board of Directors followed the recommendation of the Special Committee and approved the sale of the respective corporate share.
Matt Wilson, President and Chief Executive Officer of Light & Wonder, reportedly said: “We are excited to fully unite SciPlay with Light & Wonder, further accelerating our cross-platform strategy and creating an even stronger and more efficient platform for growth. Our combined balance sheets will provide us with the flexibility to further invest in developing and launching great games cross-platform and deliver enhanced returns to shareholders.”
Wilson added that that the two world-class teams brought together will help the company grow as one unified company for the benefit of all stakeholders.
Gerald Cohen and April Henry, independent directors of the SciPlay board and co-chairs of the SciPlay Special Committee, said that the transaction of the subject equity interest portion is a great chance to favorably position both SciPlay and Light & Wonder. They added that the SciPlay Committee carefully evaluated Light & Wonder’s proposal and that they consider that the combination of the two developing companies into the Light&Wonder leadership is the best outcome for the SciPlay shareholders.
Transaction To Close in Q4 2023:
It seems that the transaction between the two companies represents a sort of partnership rather that the sale and acquisition of shares as the two developers are now unified around the common goal to push forward the operation of both companies with the same activity. For this reason, they expect to close the transaction as soon as in the fourth quarter of 2023. The agreement has been approved in written form and the written consent of the concerned shareholders obtained.
$731 Million Generated in Q 2 2023:
Therefore, no additional approvals of any party’s shareholders is required and the transaction may be seamlessly conducted. Once it is completed, SciPlay will become a 100% owned subsidiary of Light & Wonder. The latest acquisition may represent a vehicle for the Las Vegas-based provider to further boost its revenues which, according to GGRAsia, amounted to $731 million in the second quarter of 2023. As of 30 June 2023, the company saw a 9.1% revenue increase over the prior quarter and looks for further growth through the SciPlay deal.
Source: Read Full Article