As it continues to decide whether to float its global lottery business and American land-based and online gaming behemoth Scientific Games Corporation has announced a proposal that could see it fully acquire SciPlay Corporation.
The Las Vegas-headquartered firm used an official press release to detail that the all-stock offer would see it take control of the around 19% shareholding in Nasdaq-listed SciPlay Corporation that it does not already hold in order to make the online casino games developer a wholly-owned subsidiary.
Faster fulfilment:
Scientific Games Corporation moreover explained that its proposition is estimated to be worth in the region of $1.9 billion and would see shareholders in SciPlay Corporation receive 0.25 of its own Class-A common stock for every one of their own shares. The Nevada firm went on to proclaim that such an arrangement would allow the target to ‘accelerate its strategy and expand in the high-growth casual gaming market’ by being part of a larger enterprise featuring ‘a strengthened balance sheet, substantial cash flows and enhanced financial flexibility.’
Dominant duty:
SciPlay Corporation currently offers a portfolio of seven core online casino games encompassing the popular Gold Fish Casino, Jackpot Party Casino, Quick Hit Slots and Hot Shot Casino social titles as well as the casual Bingo Showdown, 88 Fortunes Slots and Monopoly Slots innovations. The developer was spun off from Scientific Games Corporation in 2019 although its former parent still holds an estimated 81% shareholding in addition to some 98% of its voting rights.
Combination comfort:
Barry Cottle serves as the President and Chief Executive Officer for Scientific Games Corporation and he used the press release to declare that the envisioned transaction would provide shareholders in SciPlay Corporation with ‘speed and certainty’ and that his company will not be conducting any due diligence functions. The boss stated that the proposed deal is furthermore exempt from ‘regulatory approvals’ and would ‘deliver significant operational, strategic and financial benefits’ that could ‘drive shareholder value in excess of what each company could generate on a standalone basis.’
Smooth step:
Scientific Games Corporation additionally pronounced that the takeover of SciPlay Corporation should permit it to accelerate its own ‘vision of becoming a leading cross-platform global games company’ by leveraging the target’s existing mechanics, content and roadmap to establish ‘an enhanced player experience across land-based and digital platforms as we see increasing convergence.’
Read a statement from Cottle…
“Through our existing collaboration with SciPlay Corporation, we believe a transaction would be seamless and we look forward to fully joining forces with SciPlay Corporation’s talented leadership team and employees to continue innovating on behalf of customers and players.”
