Brookfield Partners completes acquisition of Light & Wonder’s lottery division
The deal first agreed in October 2021, has been completed for an estimated $5.8bn
Brookfield Business Partners has completed the acquisition of Light & Wonder’s global lottery services business.
Light & Wonder’s lottery division has long-term relationships with approximately 130 government and non-government lotteries in over 50 countries. The deal has been completed for an estimated $5.8bn (£4.4bn) in gross cash proceeds and approximately $5bn of net after-tax proceeds, will see Light & Wonder deliver on one of the key promises it made as part of its strategic review.
The review, announced as part of its 2021 Q4 earnings call that the proceeds of the sale would be used towards three specific priorities – debt reduction, share buyback and investment in key growth opportunities.
The divested company will still operate under the Scientific Games name, with Metro Atlanta to continue to serve as its global headquarters, and the entire executive management team will remain the same. The igaming service provider rebranded itself as Light & Wonder from Scientific Games last month. The sale of Light & Wonder’s lottery business was announced in October 2021.
Pat McHugh, who will continue as CEO for Scientific Games after heading up the company’s lottery division, said: “This marks an exciting new chapter for Scientific Games and positions the company to build on the record growth we achieved in 2021 across all parts of our lottery business.
“Taking a long-term view of the business, Brookfield is committed to providing Scientific Games with the flexibility and agility necessary to expand our deep product portfolio to expand our deep product portfolio to meet the evolving needs of our customers and their beneficiaries.” McHugh added.
Light & Wonder CEO Barry Cottle said: The lottery business sale closing is a significant step towards streamlining our portfolio and strengthening our balance sheet as we execute on our strategy to transform our business with a singular focus on building great games and franchises to entertain our players wherever and whenever they want to play.”
Brookfield Business Partners is a worldwide business service, and private equity company, headquartered in Toronto, that invests in and operates high-quality enterprises that serve both the public and private sectors.
Managing partner for Brookfield Business Partners, David Nowak, commented: “We are pleased to continue to grow our business with the acquisition of a market leader and essential service provider to governments around the world.