The acquisition of the outstanding stock, which amounted to 17% of the business, gives L&W full control over the social gaming division previously spun off as Scientific Games in 2019. L&W purchased the remaining equity for $22.95 per share in cash, slightly higher than the estimated $20. The total value of the acquisition is over $420m.
As a result of the acquisition, SciPlay will now operate as a wholly owned subsidiary of Light & Wonder. The common stock of SciPlay will no longer be publicly traded on the Nasdaq Global Select Market.
Matt Wilson, L&W’s president and chief executive, stated that integrating SciPlay with Light & Wonder will create a more streamlined organization with the financial strength to accelerate their cross-platform strategy and deliver enhanced shareholder returns. The aim is to improve collaboration between teams and provide a seamless, best-in-class player experience.
In both Q1 and Q2 of 2023, both L&W and SciPlay achieved record-breaking revenue. SciPlay’s revenue in the three months ending in June 2023 was $190m, representing an 18.8% YoY increase. L&W attributes this success to their core social casino business, which outperformed the market. The group revenue for the same period was $731m, a 19.8% YoY growth.
In January 2022, L&W (then known as Scientific Games) abandoned plans to acquire the remaining 19% of SciPlay, stating that it would not be prudent for their shareholders at that time. Furthermore, in April 2022, L&W sold its lottery business to Brookfield Business Partners for $5.8bn, and in August 2022, completed the sale of its OpenBet sports betting platform to Endeavor.
