SciPlay to Reunite with Light & Wonder as Takeover Bid Strengthens
In a recent announcement, Light & Wonder (NASDAQ: LNW) revealed plans to reunite with SciPlay (NASDAQ: SCPL), the social casino developer that split from the parent company in 2019. This decision was made in light of their second-quarter earnings, during which Light & Wonder expressed intent to purchase the 17% of SciPlay shares it didn't already own. The deal, valued at $22.95 per share, surpasses the previous offer of $20 per share made in May, signifying a 16.7% premium over SciPlay's latest closing price of $19.65.
Regarding this development, Matt Wilson, Light & Wonder's CEO, expressed excitement over the combined balance sheet, stating it would enable further investment in creating and launching exciting games across multiple platforms, ultimately boosting shareholder returns. Both Light & Wonder's board and a special committee of SciPlay's independent directors have approved the decision.
With a slated closure in the fourth quarter, this transaction is expected to end a captivating two years of movement between these two gaming entities. In July 2021, Scientific Games attempted to buy the 19% of SciPlay shares still held by the company, but this deal fell through. Last October, Engine Capital vocally recommended SciPlay sell itself to its former parent, estimating its worth at $15 to $16 per share. Despite some delay, there was always confidence that SciPlay's options were extremely limited due to Light & Wonder's ownership of 83% of the outstanding equity and 98% of the voting interest in the social casino developer.
SciPlay's notable titles include Jackpot Party, Quick Hit Slots, Gold Fish Casino Slots, Hot Shot Casino, 88 Fortunes, Bingo Showdown, and Monopoly Slots.
SciPlay - The Key to Light & Wonder's Growth
By merging with SciPlay, Light & Wonder gains access to a lucrative growth channel. The second-quarter financial data of SciPlay establishes this fact, confirming the company's continued success.
Apparently, SciPlay is thriving, with its Q2 figures showcasing impressive performance. Dan O'Quinn, SciPlay's interim CFO, highlighted this in a statement, noting SciPlay's persistent outperformance in the social casino market after posting six consecutive quarters of over-performance and securing a significant competitive edge in this space. In the most recent quarter, SciPlay's revenue experienced a 18% increase, while net income skyrocketed by 28% year over year. Cash-on-hand swelled by $64.8 million, reaching $394.9 million.
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Source: www.casino.org
