Published on 10 Aug 2023 on Zacks via Yahoo Finance
Light & Wonder (LNW) to Acquire Full Ownership of SciPlay
Light & Wonder, Inc. LNW recently inked a definitive agreement with SciPlay Corporation SCPL to acquire the remaining 17% ownership stake in the latter for $22.95 per share. The all-cash transaction is likely to be completed by fourth-quarter 2023, subject to the fulfillment of mandatory closing conditions and other regulatory approvals.SciPlay previously operated as the Social division within the global gaming leader Scientific Games (the erstwhile name of Light & Wonder) and became an independent company in 2019. It operated as a subsidiary of Light & Wonder, with the parent company holding the majority interests in it.SciPlay is a leading developer and publisher of digital games on mobile and web platforms, including Jackpot Party Casino, Gold Fish Casino, Hot ShotCasino and Quick Hit Slots, MONOPOLY Slots, Bingo Showdown and 88 Fortunes Slots. It generates revenues from the sale of virtual coins, chips and bingo cards, which players can use to play slot games, table games and bingo games. SciPlay combines a data-driven approach and advanced game economy with high-quality content to create a thrilling mobile gaming experience for users across the globe.The merged entity will help accelerate the cross-platform strategy and create a stronger and more efficient platform for growth with an optimum balance sheet position for greater financial flexibility. This, in turn, will help to invest more funds for developing and launching cross-platform games for enhanced shareholder returns.Light & Wonder strives to be a leading cross-platform global games firm with a focus on content and digital markets. The company aims to create games and evergreen franchises that can be made available to players on any platform they want to play. It follows a holistic growth strategy and intends to extend its footprint in high-return markets and strategic adjacencies that generate strong long-term cash-based returns.Light & Wonder currently carries a Zacks Rank #2 (Buy). The stock has gained 31.1% over the past year compared with the industry’s growth of 14.7%.
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