In a recently-posted press statement, the Las Vegas-based company revealed the details of this offer, which would allow it to acquire around 19% of SciPlay Corporation’s shares that it doesn’t already own.
The ultimate goal of this transaction is to make the renowned developer of online casino games its wholly-owned subsidiary.
Further Accelerating Growth
According to available information, the Scientific Games Corporation proposal has an estimated value of nearly $1.9 billion. Under the provisions of the proposition, shareholders in SciPlay Corporation are bound to get 0.25 of the Class-A common stock for every share they have.
Explaining the aims of the takeover, the Nevada-based company said the move would enable SciPlay Corporation to accelerate its business strategy further and expand its presence in the growing casual gaming market.
SciPlay Corporation could surely achieve that as part of a bigger enterprise with a strong balance sheet, financial stability, and considerable cash flows.
At this moment, SciPlay Corporation boasts a portfolio of seven core online games, including Jackpot Party Casino, Bingo Showdown, Gold Fish Casino, Monopoly Slots, 88 Fortune Games, and Hot Shot Casino, as well as Quick Hit Slots and Hot Shot Casino social titles. The developer was established in 2019, and although independent from Scientific Games Corporation, its former parent company still has a stake of 81% and 98% of its voting rights.
More Can Be Achieved through Collaboration
President and Chief Executive Officer at Scientific Games Corporation, Barry Cottle, pointed out that the proposed transaction would deliver speed and certainty to SciPlay Corporation shareholders. He also added that his company wouldn’t be carrying out any due diligence processes.
Cottle explained the envisioned deal would be exempt from regulatory approvals. According to him, strategic, operational, and financial benefits would help increase shareholder value much higher than each company could achieve individually.
But what does the proposed deal mean for Scientific Games Corporation? First of all, it will allow it to speed up its own strategy of becoming a leading global gaming company. This should be achieved through leveraging SciPlay Corporation’s current content, mechanics, and roadmap. That way, Scientific Games Corporation will be able to offer an enhanced playing experience across both land-based and online segments, and at the same time, increase convergence.
The Scientific Games Corporation executive also said that through the current collaboration with SciPlay Corporation, his side would be able to carry out a seamless transaction. He added they were looking forward to joining forces with SciPlay Corporation on a whole new level.
By partnering with the target’s experienced and talented management and employees, the two sides will be able to offer more innovations to their customers across regulated markets.
Scientific Games Corporation offers a wide selection of products, such as slot machines, lottery games and gaming systems, internet applications, social gaming, and sports betting. It also owns stakes in companies in the United States, Italy, and China.