Light & Wonder completes SciPlay acquisition as Q2 revenue jumps 20%
Las Vegas-based firm acquires final 17% of social gaming developer as revenue for second quarter reaches $731m
Light & Wonder has announced that it has acquired the remaining shares in SciPlay.
The supplier acquired the remaining 17% shares of SciPlay at a purchase price of $22.95 (£18) per share in an all-cash transaction, which is an increase from May’s $20 offer.
SciPlay will subsequently cease to be publicly traded and become a wholly owned subsidiary of Light & Wonder.
The Light & Wonder board of directors has approved the acquisition, and a special committee of SciPlay independent directors has determined that it is in the best interests of its shareholders. As a result, the SciPlay board of directors has also given its approval.
The transaction is expected to close in Q4 2023, subject to customary closing conditions.
Light & Wonder said the acquisition would increase shareholder value, with seamless collaboration cited as one of the plus points.
According to the supplier, the deal will add momentum to the firm’s cross-platform strategy, as well as flexibility in using SciPlay’s cash flows for investments and the facilitation of long-term margin enhancement opportunities through synergies.
On the deal, Matt Wilson, president and CEO at Light & Wonder, said: “We are excited to fully unite SciPlay with Light & Wonder, further accelerating our cross-platform strategy and creating an even stronger and more efficient platform for growth.
“Our combined balance sheets will provide us with the flexibility to further invest in developing and launching great games cross-platform and deliver enhanced returns to shareholders.”
The deal comes as Light & Wonder announced its financial results for Q2 2023. The firm’s Q2 revenue reached $731m, representing a 20% year-on-year (YoY) rise.
Gaming revenue increased by 21% YoY to $471m, primarily due to the continued momentum in gaming machine sales, which went up 41%, driven by North American and Australian sales.
SciPlay saw revenue go up by 19% YoY to a record level of $190m, mainly driven by the firm’s core social casino business. Light & Wonder’s igaming division reached a record quarterly revenue of $70m, primarily driven by growth in the US.
Overall, Light & Wonder ended the quarter with a net income of $5m, compared to a net loss of $150m the previous year, which included a $147m loss on financing transactions related to debt pay down and refinancing transactions in April 2022.
In the quarter, Light & Wonder proceeded with a secondary Australian Securities Exchange (ASX) listing to grow the firm’s profile in Australia and allow the supplier access to new investors to complement its existing base of shareholders.
On the results, Wilson commented: “Year to date, we delivered double-digit top and bottom-line growth across all three of our businesses generated strong cash flows and reduced leverage, resulting in an exceptional second quarter.
“I am also pleased to share that Light & Wonder is expanding its global presence with a successful ASX listing during the quarter that is gaining momentum with the investment community.”