Lottery giant Scientific Games has completed its US$1.5bn buyout of slot machine manufacturer WMS Industries, less than 10 months after the merger was announced.
"We are pleased to announce the successful completion of our merger with WMS," said A Lorne Weil, Scientific Games' chairman and CEO. “It is the fusion of two leading providers of lottery games, gaming machines and game content as well as systems, sports betting technology and social, mobile and interactive content and services.
"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.
"We are excited to be able to draw on each organisation'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."
In connection with the merger, Scientific Games entered into a new $2.6bn credit facility, consisting of a $2.3bn term loan facility and a $300m revolving credit facility that was undrawn at closing. The term loan facility was used, in part, to finance the acquisition, to pay off existing debt and to pay fees and expenses relating to the merger and related financing.
Scientific Games’ largest shareholder is financier Ronald Perelman, who is ranked 27th on the Forbes 400 list of billionaires with a net worth of $14bn. Perelman owns 38 per cent of the company. “It’s a fabulous deal,” he said in an interview in September.
Perelman, who also owns a large stake in cosmetics giant Revlon, said his investment fund had looked at acquiring “a destination resort” a few years ago, but decided it was more a real estate investment. He explored other ways to enter the casino industry. “We like gaming and it’s a great industry,” Perelman said.
