Scientific Games Seals Deal for Online Gambling WMS Industries

Published Friday, February 01, 2013 -

The consolidation of market share has once again made the gambling industry news with the recent announcement of the slot machine maker and online gaming firm WMS Industries purchase by competitor and lottery technologies provider and gaming machine outfitter Scientific Games Corp. The recently launched online gaming subsidiary Williams Interactive of WMS Industries has made a lot of headway in the online gambling industry with deals struck between the Jackpot Party social casino as well as other big accounts in Canada and Europe. WMS has been granted a license to operate online poker services in Nevada and a future partnership with 888’s business to business subsidiary Dragonfish was just completed. The price of the acquisition was hefty at $1.42 billion and justified according to those in the know.

Lorne Weill Chief Executive Officer for Scientific Games commented that the “transformational” acquisition would enable Scientific Games to offer “a complete portfolio of lottery and gaming products and services to both new and existing customers around the world.” The company’s Chief Financial Officer, Jeffrey Lipkin, also stated that the acquisition would “diversify Scientific Games revenue base, expand margins and propel future growth opportunities.” The deal will take it’s time getting around to a final edit by shareholders and regulators which is expected to come by the end of 2013. The purchase of the Williams Manufacturing company is one example of an old but progressive firm being purchased by a firm with a focus on diversification and expansion.

The price for the WMS reflects the 59% premium on WMS’ share value, and its potential market initiatives. The proposal to investors points out the reasoning behind the purchase such as cross selling opportunities and above all a diversification of Scientific Games future growth and development of its international marketing strategy. The move is expected to add a substantial amount to the value of Scientific Games Corporation through lucrative cash flow and brand interaction. Scientific Games stock was up 6.75% on the New York exchange as of February 1st 2013.

Related news

Return to Latest News