Light & Wonder acquires Playzido as Q1 revenue jumps 26%
Las Vegas-based supplier bolsters content portfolio with latest M&A move as positive Q1 includes more than 50% reduction in debt
Light & Wonder has acquired Playzido in an undisclosed deal which will see the supplier expand its igaming content capabilities.
One of the core reasons for the acquisition was Playzido’s proprietary RGS platform, which Light & Wonder noted would allow it to accelerate the pace at which it can partner with studios and operators.
Playzido was founded by former Paddy Power and Betfair head Stuart Banks in March 2017 with a view to targeting the European market.
Via this acquisition, Playzido will now bring its services to North America, while continuing to scale its operations in Europe.
The acquisition of Playzido follows those of slots developer Lightning Box, live casino supplier Authentic Gaming and Elk Studios by Light & Wonder, formerly known as Scientific Games.
Dylan Slaney, Light & Wonder igaming CEO, said: “The Playzido deal is a perfect example of an acquisition that dovetails with our global strategy, demonstrating yet again our commitment to make targeted value-enhancing investments designed to advance our cross-platform content capabilities.”
Banks added: “This deal is testament to the drive and dedication of our team, who have been committed to building a fantastic games platform that allows independent studios and operators to bring their creativity and innovation to the global gaming market.”
Elsewhere, Light & Wonder posted a 26% year-on-year (YoY) rise in revenue for Q1 2022 from $453m to $572m.
Of this $572m total, $355m was derived from the supplier’s gaming arm, with $158m from its SciPlay division and the remaining $59m from igaming.
Additionally, adjusted EBITDA jumped 42% from $142m to $202m, with a corresponding margin of 35%, up from 31% in Q1 2021.
The company was also able to significantly reduce its debt from $8.9bn to $4bn, driven by the sale of its lottery division.
Connie James, Light & Wonder CFO, said: “The performance during the quarter is reflective of the enthusiasm and energy felt throughout Light & Wonder as we entered 2022 with strong momentum across all our businesses, generating double-digit top and bottom-line growth.
“I also want to congratulate the team on the successful close of the lottery business sale and refinancing transactions. Collectively, these transactions significantly change the complexion of our balance sheet, substantially reduce our outstanding debt, and meaningfully strengthen our credit profile,” she added.