Scientific Games gains on proposing to acquire remaining 19% stake in SciPlay at 11% premium
Jul. 15, 2021 8:13 AM ETLight & Wonder, Inc. (LNW), SCPLLNW, SCPLBy: Niloofer Shaikh, SA News Editor4 Comments
- Scientific Games Corporation (NASDAQ:SGMS) shares jump 11% premarket in response to proposal to acquire the remaining 19% equity interest in SciPlay (NASDAQ:SCPL) that it does not currently own in an all-stock transaction.
- In consideration, SciPlay shareholders would receive 0.250 shares of SGMS common stock for each share of SciPlay, implying an enterprise value of $1.9B and purchase multiple of 2021E consensus EBITDA of 10.1x and 2022E consensus EBITDA of 9.4x.
- Pursuant to this transaction, SciPlay would become a wholly-owned subsidiary of Scientific Games.
- Scientific Games expects the acquisition to be immediately accretive and will drive long-term sustainable growth and significant shareholder value.