19 May 2023
L&W’s $422m Acquisition Proposal Unveils Growth Opportunities in Gaming Industry
Light & Wonder (L&W) unveils a $422m proposal to acquire the remaining public shares of SciPlay, a social gaming business. With 83% of the economic interest and 98% of the voting interest already held by L&W, the purchase price is $20 per share. The proposed acquisition of SciPlay by Light & Wonder (L&W) indicates an enterprise value of $2.1bn, offering a substantial premium of 28.5% over the closing stock price before the proposal.
The successful acquisition would make SciPlay a wholly owned subsidiary of L&W, fostering unified businesses and seamless collaboration to support their cross-platform strategy. By combining balance sheets, L&W and SciPlay aim to drive shareholder value through flexible cash investments.
L&W President and CEO Matthew Wilson emphasize the compelling benefits of the proposed transaction, offering SciPlay’s public shareholders immediate liquidity and de-risking their investment. L&W does not anticipate the need for due diligence, regulatory approvals, or approval from L&W shareholders, and no third-party financing is required to fund the deal. Wilson expresses confidence in the operational seamlessness of the transaction, highlighting the opportunity to collaborate with SciPlay’s talented leadership team and employees for continued innovation.
In Q1 2023, L&W achieved remarkable revenue growth, a 17.1% year-on-year increase, driven by stellar performances in igaming and SciPlay. Gaming revenue contributed $419m, SciPlay generated $186m, and igaming added $65m to the total revenue of $670m for the quarter.
Additionally, L&W has obtained conditional approval for a secondary listing on the Australian Securities Exchange (ASX) as an ASX Foreign Exempt Listing, further expanding its market presence. On May 22, the highly anticipated official quotation of L&W Chess Depositary Interests (CDIs) will begin. Each CDI will proudly represent one fully paid share of common stock, offering an exciting opportunity for investors.