Scientific Games acquires NYX in $631m deal
Two firms hail the creation of a “global gaming and lottery powerhouse”
Scientific Games has acquired 100% of the shares of NYX Gaming Group for approximately US$631m, the companies announced today.
The transaction will be financed with cash and debt and represents a 112% premium on NYX’s closing stock price, at CAD$2.40 per share.
“This important transaction creates a global gaming and lottery powerhouse,” said Kevin Sheehan, Scientific Games’ president and CEO.
“Scientific Games will be a stronger industry leader offering one of the broadest end-to-end portfolios of engaging content, innovative technologies and digital products and services across gaming and lottery.”
Sheehan said the deal wold specifically allow SG to capitalise on the growing online gaming and sports betting markets, with OpenBet delivered throughout Scientific Games’ current network of partners in existing and future regulated US and global markets.
NYX CEO Matt Davey will stay on following the acquisition and oversee a newly created Digital Gaming and Sports division at Scientific Games, reporting into Sheehan.
“The acquisition will expand the products and solutions we are collectively able to offer our customers and accelerate the execution of our long-term strategic plan,” said Davey
“We will now have scale, content and product development capabilities, complementary global infrastructure and access to an expanded customer base. We believe Scientific Games is the ideal partner for NYX, and we look forward to working alongside the talented Scientific Games team.”
Regulus Partners said the deal was the right move on paper, given the opportunities for omni-channel success, the addition of sportsbook to SG’s partnersrs, and the addition of top-tier gaming content to NYX’s gaming services.
However Regulus also voiced concern about the successful integration of the business, adding: “The historical track record of large principally-US businesses understanding, integrating and growing digital real money gambling capabilities by acquisition is beyond poor (eg, GTECH with Finsoft and Boss; IGT with WagerWorks and especially Entraction).
“However, with the regulated scale of online gambling now becoming key to European gambling markets and growing in significance internationally (even potentially in the US), the logic for an online acquisition of scale is compelling, while NYX represents one of the few readily digestible targets available.
“Given this strategic backdrop, the risk of Scientific Games not increasing capabilities in the digital space is therefore now probably greater than the risk of badly executing a material online deal.”