Scientific Games Corporation has acquired WMS Industries.
The companies announced today that they have entered into a definitive agreement under which Scientific Games has agreed to acquire WMS for approximately $1.5bn.
The transaction, which was unanimously approved by both the Scientific Games and WMS boards of directors, combines two leading companies in the gaming industry to create an organisation that will supply an extensive range of products and services to public and private sector lottery and gaming customers throughout the world.
Scientific Games is a leader in the supply of lottery instant tickets, lottery and video gaming systems and server-based gaming. WMS is a leader in the supply of gaming machines and interactive gaming content.
“The acquisition of WMS is transformational for Scientific Games, enabling us to offer a complete portfolio of lottery and gaming products and services to both new and existing customers around the world,” said A Lorne Weil, Scientific Games’ chairman and CEO.
“We expect to combine our game content, technology, operational capabilities and respective geographic footprints to create an enterprise poised to capitalise on significant growth opportunities around the globe.”
“The combination of Scientific Games and WMS yields tremendous benefits to our customers, shareholders and employees,” said Brian R Gamache, WMS’ chairman and CEO. “We view this transaction as the next logical and strategic step in offering continued innovation in gaming.
"Shareholders will enjoy a meaningful premium for their shares and employees will have expanded career opportunities as part of a larger, broader and more diverse organisation. We are delighted with this transaction and look forward to working with our new colleagues at Scientific Games.”
Between them the two companies have revenues of US$1.6bn and profits of $579m in the year ended September 30, 2012. On news of the acquisition, WMS’ shares rose by over 50 per cent in value to $24.75.
The deal also led to a rise in the share price of other companies supplying the sector, including IGT, Bally and SHFL entertainment. Scientific’s share price fell four cents to $8.89.
The purchase of WMS will permit Scientific to more quickly move into the slots and video poker markets. Perhaps the biggest advantage to the two companies is synergy. Scientific is an American-owned company but gets most of its business in the foreign markets, while WMS has 75 per cent of its sales in North America.
