Scientific Games has proposed to the board of directors at SciPlay Corporation that it will acquire the remaining 19% equity interest in the company.
Currently, Scientific Games owns around 81% of the economic interest and 98% of the voting interest in SciPlay. With the 19% interest and acceptance of the proposal, SciPlay will become a wholly owned subsidiary of Scientific Games.
The transaction is seen as another step forward in Scientific Games’ strategy of becoming a content-led growth company with a focus on digital markets.
Scientific Games believes SciPlay “fits perfectly into Scientific Games’ focus on building engaging content and launching great games more fully cross-platform.”
In a letter penned to the SciPlay Board of Directors, Scientific Games CEO and President, Barry L. Cottle, said the merger would deliver “significant operational, strategic and financial benefits, and drive shareholder value in excess of what each company could generate on a standalone basis.”
Cottle added: “We believe SciPlay public shareholders will benefit from increased trading liquidity as a result of being part of a pro forma entity with a market capitalisation of $7bn”
The Scientific Games CEO outlined several key benefits of the combination, such as offering premium value for SciPlay shares, accelerating Scientific Games’ growth and giving SciPlay access to new content.