Scientific Games cancels purchase of 19% stake in SciPlay

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Scientific Games (SG) withdrew its offer to acquire the remaining 19% stake in SciPlay.

The initial offer was announced on July 15, 2021, when SG offered to merge with SciPlay. As a result of the merger, SciPlay shareholders outside of SG would have received 0.25 SGMS shares for each SciPlay share.

However, SG retains its 81% economic interest and 98% voting interest in SciPlay.

Barry Cottle, President and CEO of Scientific Games, said, “In line with our disciplined M&A (M&A) and capital management approach, we decided that continuing to pursue this opportunity would not be prudent for our shareholders at this time.”

SciPlay remains a strategic asset and has the opportunity to generate significant value as it grows its share of the casino social market and expands into the casual genres with $20 billion, leveraging its expertise in engagement and monetization.”

SG recently announced sales of its lottery and sports betting business for approximately $7 billion, transactions expected to close in the second quarter of 2022.

The growth of Scientific Games

Scientific Games recently reported – in its Q3 report for the year – consolidated income from continuing operations of $539 million, an increase of 25% over the prior year.

Combined revenue, including discontinued operations, was $824 million, an 18% increase over the prior year.

Gaming revenue, which increased 47% compared to the year-ago period, was primarily driven by growth in online gaming operations. iGaming revenue increased 6% and adjusted EBITDA increased 13% while US revenue increased 109%.

The report mentioned that since the third quarter of 2021, bets processed through the operator’s iGaming platform have increased by 87%.