Scientific Games Withdraws SciPlay Offer
Online casino provider Scientific Games has announced that it has withdrawn its all-stock offer to acquire the remaining 19% equity interest it does not yet own in mobile social games developer SciPlay. Scientific Games previously announced the merger in July 2021. It will retain its 81% economic interest and 98% voting interest in SciPlay.
Scientific Games has withdrawn its all-stock offer to acquire the remaining 19% equity interest it has yet to own in mobile social games developer SciPlay.
©besteonlinecasinos/Pixabay
Pursual of Merger Not in Line with Shareholders Interests
Renowned online casino provider Scientific Games has revealed that it has pulled out of its previously announced all-stock offer to acquire the remaining 19% equity interest in SciPlay which it does not yet own.
Scientific Games initially made the offer to merge with SciPlay in July 2021, in a deal that would have resulted in all other SciPlay shareholders receiving 0.25 shares of SGMS stock for each share of SciPlay stock. Scientific Games will nevertheless retain its 81% economic interest and 98% voting interest in SciPlay.
In a corporate press statement, Barry Cottle, President and Chief Executive Officer of Scientific Games, explained that the pursual of the 19% equity stake deal with SciPlay was not in line with the company’s shareholder interests:
“In line with our approach to capital management and disciplined M&A we have decided that continuing to pursue this opportunity would not be prudent for our shareholders at this time.”– Barry Cottle, President and Chief Executive Officer, Scientific Games
Cottle clarified, however, that SciPlay continues to be a key strategic asset in Scientific Games’ commitment to developing the best possible online casino games:
“We remain committed to our strategy of leveraging our unparalleled portfolio of hit franchises, world-class talent and premium content engine to develop great games fully cross-platform. SciPlay remains a strategic asset and has the opportunity to drive meaningful value as it grows its social casino market share and expands into the $20B casual genre leveraging its expertise in engagement and monetization.”
Scientific Games to Sell its Lottery and Sports Betting Businesses
The casino games publisher also recently announced that it would be selling its Lottery and Sports Betting businesses for approximately $7 billion in transactions that are on track to close in the second quarter of 2022.
The rationale behind this decision is that it would allow Scientific Games to drive improved shareholder returns by significantly de-levering its balance sheet, investing in the core business, and targeting accretive digital M&A to accelerate its growth strategies.
Scientific Games often claims to want to become the leading cross-platform global game company. It will therefore continue to evaluate additional opportunities to allocate capital to best create shareholder value, including capital returns to shareholders. And it will continue its clear discipline when dealing with M&A by showing a clear focus on optimizing returns for its many shareholders.
Scientific Games Launched Platform in Colombia in September 2021
In September 2021, Scientific Games broke into the burgeoning Latin American market with the announcement of a new platform for Colombian gamers as the result of a partnership with Swedish operator Betsson. The platform, named OpenGaming, will be available to all customers of Latin American-facing online casino and sportsbook ColBet, due to the fact that Betsson now owns 70% of the company.
Along with being able to enjoy the regular flagship Scientific Games titles, Colombian betting fans should note that there is the possibility that Scientific Games and Betsson will collaborate on a set of unique games specifically designed for the OpenGaming platform in the future. Vice president of digital gaming at Scientific Games, Dylan Slaney, emphasized the growing potential of the Latin American market, noting Betsson’s big plans for the continent:
“Betsson Group has big plans across both Colombia and the LatAm region and we are sure that our offering will appeal to its players across a wide demographic. This partnership represents the first step for OpenGaming in a vibrant market. Our sights are firmly set on building sustainable success across LatAm, one of the most important growth areas in the world for the igaming industry.”– Dylan Slaney, Vice President of Digital Gaming, Scientific Games
SG Acquired SportCast in May 2021
Back in May 2021, Scientific Games announced that it had acquired provider of player engagement technology SportCast. The company is perhaps best known for developing the BetBuilder platform, providing players access to several different markets during the course of the same game, as well as other various engagement tools for operators.
Executive vice president for sports at Scientific Games, Keith O’Loughlin, described the acquisition of SportCast as a boon to sports bettors across the United States:
“For sports fans, the ability to define the story of the game, bet on it and watch it live has become a thrilling way to engage in the action. SportCast’s technology and platforms will help us fuel the next wave of our data-driven, global sports expansion. The award-winning BetBuilder product is just the first of many innovative products that can be powered by the underlying platform for the benefit of our customers and we’re thrilled to be able to roll these out.”
