Want to buy the remaining shares
Scientific Games Corporation (SG) has unveiled its plan to acquire the remaining 19% shares. in SciPlay Corporation, which it does not own, at an estimated enterprise valuation of $1.9 billion.
SciPlay will then be a wholly owned subsidiary of Scientific Games
The Las Vegas-based gaming company announced on Thursday that it had submitted an offer to SciPlay's board of directors to buy out the remaining stake in the stock deal. If the merger is successful, SciPlay will become a wholly owned subsidiary of Scientific Games.
As part of the proposed deal, SciPlay shareholders will receive 0.25 shares of Scientific Games common stock. for each share of SciPlay Class A common stock they hold. This would mean a 12% premium to the respective closing prices of the two companies on July 16, 2021.
A number of potential benefits
Scientific Games believes that proposed merger agreement will bring significant financial, strategic and operational benefits. It will also increase shareholder value and increase liquidity for investors. Scientific Games is confident that the ongoing collaboration will make the acquisition of SciPlay a smooth process.
mission to grow his online business to a size similar to his land-based business
Scientific Games hopes to become the world's leading cross-platform gaming company. He wants to use the game mechanics and content of SciPlay to improve the gaming experience both online and on land. SciPlay will be part of Scientific Game's mission to grow its online business to the size of its land-based business in the next three years.
Scientific Games believes the proposed acquisition will provide confidence and speed for SciPlay's public shareholders.
As part of the proposal, Scientific Games CEO and President Barry Cottle said the company felt it would be appropriate to "publicly disclose our proposal at the same time as delivering this letter" to the SciPlay board of directors.
Transition to digital technologies
After a strategic review Scientific Games in June announced plans to focus on growing its digital business . As part of this plan, the company intends to get rid of its betting and lottery business. The move will strengthen the company's balance sheet and provide financial opportunities to invest in broader growth opportunities.
Scientific Games is currently considering various asset divestiture options, including a sale, an initial public offering, or a merger with a Special Purpose Acquisition Company (SPAC). The desire to develop digital business is explained by the fact that the land-based business of the company is experiencing difficulties during the pandemic.
In the fourth quarter of 2020, terrestrial revenue fell 36% year on year to $286M, while digital revenue for the same period was 73M, up 1%. Ground fighting continued into the first quarter of 2021, reporting a 23% drop in divisional revenue year-over-year. However, it was the only business segment that saw a decline over the period. Digital revenue continued to grow, growing 12% year-on-year in the first quarter of 2021 to $ 86m.
Message Science Games Seek Growth With Proposed SciPlay Merger Deal first appeared on Latest Internet Gambling News .