Scientific Games Corporation has just unveiled that it has submitted a proposal for the acquisition of 19% interest in SciPlay. Based on the brand’s plan, SciPlay would become a subsidiary of Scientific. The proposal is already on the table and the Board of Directors of SciPlay Corporation should make a decision.
The recent announcement from Scientific is yet another step from the provider which looks to become one of the leading providers of gambling content, focused on digital markets and unlocking the value of its products and new tech solutions. SciPlay would be the right acquisition for Scientific Games which already produces the most engaging content.
According to the SG expectations, the transaction should be automatically accretive to the value of its shares providing SciPlay shareholders a value for their investment. It would also create the chance to take part in the Scientific Games projects which plans to continue with long-term growth.
Potential Benefits of the Acquisition
Following the new proposal, Scientific has presented potential benefits for the partner:
- Providing a value for SciPlay shares with the chance to participate in the upside of SGMS share ownership as they transform the company, boosting sustainable growth and shareholder value
- Acceleration of SGMS’s plan of becoming a premium cross-platform company via the integration of SciPlay by using content, game mechanics, and a new development guideline to create an increased player experience across offline and digital platforms
- allowing SciPlay to speed up its strategy and extend in the casual gaming industry with a strong balance sheet, regular cash flows, and increased financial flexibility
- SciPlay will become a vital component in SGMS’s digital business as well as comparable in size with land-based businesses
- providing SciPlay with access to fresh content, including the powerful game roadmap that SGMS is progressing, until 2022 when the IP Licensing Agreement expires
What Else Was Proposed?
Scientific has also announced that the proposed Transaction will offer speed and certainty for SciPlay public shareholders. SGMS will not perform due diligence and they don’t expect the Transaction to require any regulatory authorization or the nod of SGMS shareholders.
The company also expects that SciPlay’s Board of Directors will hire a committee that would include independent directors who will consider the proposal. The approval of a special body will be a precondition for SG to move forward with the Transaction, which will later be subject to the “negotiation and execution of a mutually acceptable merger agreement”
Source:
“Scientific Games Proposes To Acquire Public Shares Of Sciplay”, scientificgames.com, July 15, 2021.
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