Scientific Games completes acquisition of WMS
Lottery giant completes US$1.5bn buyout of slot machine maker ten months after merger was announced
New York-based Scientific Games has completed its US$1.5bn buyout of gaming supplier WMS Industries.
The lottery and gaming giant announced the deal’s completion through a filing with the Securities and Exchange Commission 10 months after the merger was first announced.
Scientific Games paid WMS shareholders US$26 per share, with the deal approved by WMS shareholders and the Federal Trade Commission. The acquisition leaves Scientific Games US$3bn in debt, but with a $300m line of credit for expansion.
“We are pleased to announce the successful completion of our merger with WMS,” said A. Lorne Weil, Scientific Games’ chairman and chief executive officer.
“The acquisition of WMS is transformational for Scientific Games as it creates a leading company in the gaming industry with innovative content, world-class technology and an expansive geographical footprint, able to supply an extensive range of products and services to customers throughout the world,” he added.
Scientific Games is primarily a lottery supplier to several US states. The merger gives Scientific Games a foothold in the slot machine business through ownership of the casino industry’s third largest manufacturer.
SciGames total Q1 revenues fell USD$11.6million year-on-year earlier this year, with CFO Jerry Lipkin citing costs associated with the acquisition as a key factor.