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Light & Wonder Inc. announced it has reached an agreement to acquire the remaining 17% equity interest in SciPlay. Following the transaction, SciPlay will become a wholly owned subsidiary of Light & Wonder.
Both companies announced their second quarter 2023 results Tuesday. Light & Wonder said it had delivered consolidated revenue growth of 20% year over year with double-digit growth across all businesses. SciPlay was equally successful. It accomplished a record revenue with 19% year-over-year growth and strong operating cash flows of $60 million.
Details of the agreement between L&W and SciPlay
According to the agreement, Light & Wonder, formerly Scientific Games Corp., will purchase the 17% equity interest in SciPlay that it does not currently own for $22.95 per share in an all-cash transaction.
The companies expect the transaction to finalize during the fourth quarter of 2023, subject to customary closing conditions. The transaction was approved by the written consent of the holders of the requisite number of shares of common stock of SciPlay. Therefore, no additional stockholder approval will be required.
Matt Wilson, president and CEO of Light & Wonder, said in the company’s news release:
“We are excited to fully unite SciPlay with Light & Wonder, further accelerating our cross-platform strategy and creating an even stronger and more efficient platform for growth. Our combined balance sheets will provide us with the flexibility to further invest in developing and launching great games cross-platform and deliver enhanced returns to shareholders.
“We look forward to bringing our world-class teams together and are excited to innovate and grow as one unified company for the benefit of our employees, players and shareholders.”
SciPlay announced the formation of a special committee in June. Acting upon the recommendation of the special committee, the board of directors of SciPlay approved the transaction, according to a news release.
Light & Wonder and SciPlay reported Q2 2023 results
Light & Wonder and SciPlay reported results for the second quarter ending June 30.
Light & Wonder
Light&Wonder’s gaming revenue increased 20% compared to the prior year period to $471 million, primarily because of continued momentum in gaming machine sales, which increased 41% driven by increases in North American and Australian machine sales, coupled with solid performance in North American gaming operations, gaming systems and table products.
Online gambling revenue reached another high quarterly revenue of $70 million. The figure represents a 17% increase from the prior year period, mainly due to continued growth in the US market.
SciPlay
In Q2 2023, SciPlay stated a record revenue for the fourth consecutive quarter. The company’s record revenue of $190 million grew 19% yearly thanks to appealing game content, dynamic Live Ops and effective marketing.
As in Q1 2023, net income and AEBITDA outperformed revenue growth, delivering 28% and 45% yearly growth, respectively, in the second quarter.
