Light & Wonder submitted a proposal to the board of directors leading its social casino arm SciPlay Corporation. Light & Wonder plans to acquire the remaining 17% equity interest in SciPlay.
Once the transaction is approved, SciPlay will become a wholly-owned subsidiary of Light & Wonder.
Light & Wonder offers $20.00 in cash per share totaling $422 million
According to a Business Wire press release, SciPlay’s shareholders would receive $20.00 in cash per share for every SciPlay Class A common stock owned.
The Light & Wonder letter, signed by the company’s CEO and President Matthew Wilson, says that:
“The proposed consideration would imply an enterprise value of $2.1 billion for SciPlay and a premium of 28.5% based on the SciPlay closing stock price as of the close of business on May 17, 2023, the last trading day prior to the proposal.”
In total, Light & Wonder would pay $422 million. Through this transaction, Light & Wonder aims to bring its businesses together by merging its balance sheets.
The global gaming supplier expects the transaction to:
- Enable “seamless collaboration with SciPlay that would “add further momentum” to its already “robust cross-platform strategy”
- Combine the two companies’ balance sheets, providing “flexibility to invest cash across the enterprise where it will best drive shareholder value”
Light & Wonder currently owns nearly 83% of the economic interest and 98% of the voting interest in SciPlay.
Light & Wonder’s revenue pushed its Q1 growth by 10%
During the first three months of 2023, Light & Wonder’s consolidated revenues rose by 17%, reaching $670 million.
Compared to the Q1 2022, the company saw strong progression across all business segments helping drive a return to profitability.
In its recent earnings call, Light & Wonder also highlighted its yearly increase in revenue. The firm’s gaming revenue increased 18% year-over-year to $419 million compared to the prior year. L&W’s gaming machine sales mostly drove success and grew by 53%.
Driven by the continued US market growth, the firm’s online gaming revenue rose by 10%, reaching $65 million.