SciPlay Corp. has announced the formation of a special committee to review and evaluate an offer from Light & Wonder to acquire the remaining interest in the company.
The special committee of independent directors will be co-chaired by Gerald Cohen, April Henry, Michael Marchetti and William Thompson. The company said it had given the committee full authority to review and evaluate the proposal from Light & Wonder to acquire the remaining 17% equity interest in SciPlay for $20 per share in cash.
Light & Wonder currently owns nearly 83% of the economic interest and 98% of the voting interest in SciPlay.
Final attempt to acquire SciPlay
The proposal from Light & Wonder came in May. However, creating a special committee to review the offer means SciPlay might be looking to finally execute the deal.
The proposal letter dated May 19 and signed by Light & Wonder CEO and President Matthew Wilson, says:
“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.”
Good business move for Light & Wonder
Light & Wonder would pay $422 million for the remaining 17% interest it does not already own. Should SciPlay go through with the deal, it would become a wholly owned subsidiary of Light & Wonder.
The deal would do several things for Light & Wonder, including:
- Enable seamless collaboration with SciPlay adding further momentum to its 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
To kick off 2023, Light & Wonder’s consolidated revenue rose 17% to $670 million. Compared to Q1 2022, all of the company’s business segments saw strong progression helping drive profits.
During its Q1 2023 earnings call, the company said gaming revenue increased 18% year-over-year to $419 million. Additionally, L&W gaming machines sales drove success and grew 53%.
Lastly, L&W saw online gaming revenue increase 10% to $65 million, increasing its US market footprint.