Acquisition Intended: Light & Wonder Eyes $422M Purchase of All SciPlay Shares
It's really happening: The global gaming titan, responsible for crafting platforms, content, and hardware that link classic gaming experiences across all channels, has put forth a proposal to the board of directors controlling its social casino arm, SciPlay Corporation.
This proposal, if accepted, will make SciPlay a fully-owned subsidiary under the Light & Wonder umbrella.
Buckle up for $20!
Light & Wonder has proposed an exciting merger proposition. If this goes through, SciPlay's shareholders, excluding Light & Wonder and its subsidiaries, would pocket a cool $20 in cash per share for every SciPlay Class A common stock they own.
This would value SciPlay's online casino arm at a whopping $2.1 billion and offer a 28.5% premium over its closing stock price on May 17, 2023 – the last trading day before the proposal was put forth.
Should Light & Wonder successfully acquire the remaining 17% equity interest it doesn't currently own, a total of $422 million would change hands. Light & Wonder views this deal as a way of consolidating its businesses by merging balance sheets.
Simultaneously, the company predicts a smooth collaboration with SciPlay, fueling its cross-platform strategy even further.
If approved, this acquisition would provide more financial flexibility for Light & Wonder, potentially creating more value for its shareholders. In March, the company reported a 17% consolidated revenue growth for the year, a figure expected to aid its growth plans.
A second bite at the apple?
This proposal comes after Light & Wonder made a similar attempt to grab the remaining outstanding shares of SciPlay in 2021. However, this offer was pulled back in December due to opposition from SciPlay's board of directors.
Currently, Light & Wonder owns around 83% of SciPlay's economic interest and 98% of its voting interest.
Matt Wilson, Light & Wonder's CEO, asserted that SciPlay's public shareholders stand to gain from a "winning" combination of speed, certainty, and top-tier value.
Wilson also hinted that the deal's completion wouldn't require any regulatory or shareholder approvals, aiming to simplify and speed up the transaction process.
In a letter sent to SciPlay Corporation's board of directors, Light & Wonder clarified that, in its capacity as a SciPlay shareholder, it would not support any alternative merger, sale, or different type of corporate transaction involving SciPlay, or consider selling or divesting any portion of its ownership interest.
At the end of April, Light & Wonder announced an expansion of its OpenGaming content with Rogue Games.
What's in the enrichment data?The search results don't provide specifics about a recent acquisition proposal or acceptance concerning SciPlay Corporation by Light & Wonder, Inc. However, they suggest that SciPlay was acquired by Light & Wonder in 2023, making SciPlay part of Light & Wonder's social gaming segment. SciPlay specializes in mobile games, enriching Light & Wonder's broader gaming offerings spanning physical and digital platforms. The acquisition allowed Light & Wonder to strengthen its presence in the social casino arena, competing with top players such as Playtika and Aristocrat's Product Madness/Big Fish Games. However, there's no clear information about a new proposal or its implications, implying that SciPlay's integration into Light & Wonder is an ongoing process with no recent updates on a new acquisition proposal. Moreover, as a subsidiary, SciPlay's operations now form part of Light & Wonder's broader strategy, boosting the company's digital market presence and product portfolio.
- The global gaming titan, Light & Wonder, has proposed a merger with SciPlay Corporation, aiming to make SciPlay a fully-owned subsidiary under its umbrella.
- If accepted, this merger will grant SciPlay's shareholders, excluding Light & Wonder and its subsidiaries, $20 in cash per share for every SciPlay Class A common stock they own, valuing SciPlay's online casino arm at $2.1 billion.
- Should Light & Wonder successfully acquire the remaining 17% equity interest it doesn't currently own, a total of $422 million would change hands, consolidating its businesses by merging balance sheets.
- The company predicts a smooth collaboration with SciPlay, fueling its cross-platform strategy even further, and providing more financial flexibility for Light & Wonder, potentially creating more value for its shareholders.
