The October deal had a value of $5.8bn in gross cash proceeds and approximately $5.0bn in net after-tax cash proceeds. With this sale, Light & Wonder marks a significant milestone in transforming their business and balance sheet, aligning with their strategic objectives. The net proceeds from the sale will be utilized for a balanced and opportunistic approach to capital allocation. They plan to prioritize debt reduction and aim to pay down around $5.0bn in existing debt. Additionally, the proceeds will support share buybacks and further investments in growth opportunities. Light & Wonder’s CEO, Barry Cottle, views the lottery business sale as a crucial step towards streamlining their portfolio and strengthening their balance sheet. The company aims to focus on building great games and franchises to entertain players across platforms. The rebranding to Light & Wonder, along with the sale of the lottery business, reflects the company’s shift towards gaming services, while the lottery business will continue under the Scientific Games name. In addition, Light & Wonder reported a net profit of $371m during their 2021 financial year, driven by a 26.7% increase in revenue.
Light & Wonder’s Strategic Sale of $5.8bn Lottery Business to Brookfield
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