Light & Wonder unveils $422M proposal to acquire remaining shares of SciPlay

Gaming products and services provider Light & Wonder has announced a proposal to acquire the remaining 17% shares in digital gaming company SciPlay that it does not currently own. The firm made a non-binding proposal to SciPlay's Board of Directors on Friday which, if successful, would call for an all-cash transaction of $20 per share valued at $422 million. In case of the deal getting finalized, SciPlay would become a wholly owned subsidiary of Light & Wonder.

President and CEO Matthew Wilson in an email to the SciPlay Board said that Light & Wonder is interested in acquiring the final 17% that it does not already hold. “The proposed consideration would imply an enterprise value of $2.1 billion for SciPlay and a premium of 28.5% based on the SciPlay closing stock price as of the close of business on May 17, 2023, the last trading day prior to the proposal," Wilson noted.

He further added: “The proposed transaction offers SciPlay’s public shareholders a compelling combination of value, speed and certainty. SciPlay’s public shareholders would receive an immediate and certain premium value for their shares in cash, obtaining liquidity and de-risking their investment in a volatile and uncertain market.”

In a press statement, Light and Wonder noted that acquiring the remaining interest in SciPlay would unify L&W’s businesses, enabling seamless collaboration with SciPlay that will add further momentum to the company’s cross-platform strategy. It also noted that it would combine the L&W and SciPlay balance sheets, "providing flexibility to invest cash across the enterprise where it will best drive shareholder value."

Currently, L&W owns approximately 83% of the economic interest and 98% of the voting interest in SciPlay. Friday's announcement marks Light & Wonder's second try at buying the remaining stake in SciPlay. In 2021, the firm, which was previously known as Scientific Games, withdrew an all-stock offer to acquire what at the time was a 19% remaining stake in the company.