Lottery giant Scientific Games completed its us$ 1.5 billion buyout of slot machine maker WMS Industries last Friday, less than 10 months after the merger was announced.
The two companies initially agreed on a deal back in January that would see the lottery giant acquire the slot machine maker for $1.42 billion.
Scientific Games chairman and CEO A Lorne Weil commented on the successful completion of the merger, calling a ground-breaking deal that would have mutual benefits for both companies
“The acquisition of WMS is transformational for Scientific Games as it creates a leading company in the gaming industry with innovative content, world-class technology and an expansive geographical footprint, able to supply an extensive range of products and services to customers throughout the world,” added Weil, who continued, “We are excited to be able to draw on each organization’s core strengths to offer enhanced capabilities, systems and content. The merged company will provide a broader portfolio of products and services to our customers and offer expanded opportunities for our employees, and it is poised to deliver meaningful long-term value for our shareholders.”
The merger leaves Scientific Games with $3 billion in debt, as well as a $300 million line of credit for expansion.
Scientific Games is primarily a lottery service provider to several U.S. states and various countries around the world. During a licensing hearing last month in front of Nevada gaming regulators, Scientific Games Chief Financial Officer Jeffrey Lipkin said overall lottery sales worldwide were $275 billion annually, with $65 billion coming from the United States.
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