Scientific Games Corporation announces key acquisition
A little over two months after agreeing a deal to buy British online casino games developer Red7Mobile Limited for an undisclosed amount and Scientific Games Corporation is set to further expand its digital gaming empire with the acquisition of NYX Gaming Group Limited.
Las Vegas-based Scientific Games Corporation revealed that it has provisionally agreed to spend approximately $631 million in order to acquire all of the digital games and technology provider’s outstanding shares with the price representing a 112% premium on NYX Gaming Group Limited’s stock price as of September 19.
“This important transaction creates a global gaming and lottery powerhouse,” read a statement from Kevin Sheehan, President and Chief Executive Officer for Scientific Games Corporation. “Scientific Games [Corporation] will be a stronger industry leader offering one of the broadest end-to-end portfolios of engaging content, innovative technologies and digital products and services across gaming and lottery.”
Scientific Games Corporation is already the parent behind such industry heavyweights as Bally Technologies Incorporated, WMS Industries Incorporated and MDI Entertainment and stated that the purchase of NYX Gaming Group Limited is expected to be “accretive to earnings and cash flow” in its first year and “leverage neutral” at closing.
“This strategic and financially compelling acquisition combines NYX [Gaming Group Limited’s] premier digital gaming and sportsbetting platforms and expansive distribution network to our own global industry-leading content, technologies and digital products and services,” read the statement from Sheehan. “NYX [Gaming Group Limited] ideally positions us to capitalize on the growing online gaming and sportsbetting markets.”
Upon completion of the purchase, Scientific Games Corporation explained that Matt Davey, Chief Executive Officer for NYX Gaming Group Limited, is set to oversee its newly-created digital gaming and sports division. It declared the new role will see the experienced executive reporting directly to Sheehan and leading a team that is set to include Leigh Nissim, Business-To-Business Interactive Managing Director for Scientific Games Corporation.
“Scientific Games [Corporation’s] acquisition of NYX [Gaming Group Limited] will provide immediate and compelling cash value for our shareholders, expand the products and solutions we are collectively able to offer our customers and accelerate the execution of our long-term strategic plan,” read a statement from Davey. “We will now have scale, content and product development capabilities, complementary global infrastructure and access to an expanded customer base. We believe Scientific Games [Corporation] is the ideal partner for NYX [Gaming Group Limited] and we look forward to working alongside the talented Scientific Games [Corporation] team.”