Light & Wonder Plans to Acquire All SciPlay Public Shares for $422M

The global gaming supplier that creates systems, content, and hardware connecting iconic titles across all channels has sent the proposal to the board of directors governing its social casino arm SciPlay Corporation. 

Provided the proposal will be received and accepted, SciPay would turn into Light & Wonder’s wholly-owned subsidiary. 

$20 per Share in an All-Cash Transaction

The acquisition proposal that Light & Wonder was “pleased to propose” mentions a possible merger that would see SciPlay’s shareholders, different from Light & Wonder and its subsidiaries, receiving $20 in cash per share for every SciPlay Class A common stock owned. 

This would lead to an enterprise value of $2.1 billion for the online casino arm as well as a premium of 28.5% determined on their closing stock price recorded on May 17, 2023, which was the last day of trading prior to the proposal being officially made. 

Should Light & Wonder manage to successfully acquire the remaining 17% equity interest that, at the moment, it does not own, it would pay a total of $422 million. The offer is regarded by Light & Wonder as a way of bringing its businesses together by merging their balance sheets.

At the same time, the company expects the transaction to trigger a “seamless collaboration with SciPlay” that would add more momentum to its cross-platform strategy which is always well-developed.

If it would be given the green light, the acquisition would offer more flexibility for investing cash across the enterprise, thus generating more value for shareholders. At the start of March, the company announced it recorded a 17% consolidated revenue growth for the year, which was expected to assist it with its growth plans. 

A similar Acquisition Proposal in 2021, Rejected 

The current proposal comes after the company, which is fully committed to its responsible corporate efforts, made a similar effort to acquire the rest of the outstanding shares in SciPlay in 2021. 

The proposal was withdrawn in December of that year because it met resistance from the same board of directors that is not left pondering the decision.

At the moment, Light & Wonder owns around 83% of SciPlay’s economic interest and 98% of its voting interest. 

Light & Wonder’s chief executive officer Matt Wilson explained that SciPlay’s public shareholders would benefit from a “compelling” mix of certainty, speed, and premium value. 

Wilson also explained that the company does not expect the consummation of the transaction to ask for any approvals from regulators or shareholders, in an attempt to significantly simplify and speed up the transaction. 

Light & Wonder also used the letter sent to SciPlay Corporation’s board of directors to explain that, in their capacity as a shareholder of SciPlay, they would not vote in favor of any alternative merger, sale, or different type of corporate transaction regarding SciPlay, or proceed to sell or divest any portion of its ownership interest.

At the end of April, the company announced an expansion of its OpenGaming content with Rogue Games.