logo
  Join        Login             Stock Quote

Scientific Games (SGMS) Paying $26/Shr For WMS Industries (WMS) In Gaming Push

 January 31, 2013 08:01 AM
 


(By Balachander) Scientific Games Corp. (NASDAQ: SGMS) has agreed to pay $26.00 a share or roughly $1.5 billion in cash to acquire WMS Industries Inc. (NYSE: WMS), a maker of video gaming machines.

The deal represents a premium of 59 percent to previous closing price of WMS shares, which jumped 55.35 percent in Thursday's premarket trading.

Scientific Games, which offers instant lottery games and lottery gaming systems, expects the acquisition to add to earnings and free cash flow immediately.

[Related -Merger Arbitrage Mondays – June 3, 2013]

"Scientific Games' strong global footprint, including its position in server-based gaming, should help accelerate WMS' international development initiatives," Scientific Games said.

The combination will create a global gaming company with a broad portfolio of products and services for the lottery and gaming industries, Scientific Games said.

Over the trailing 12-month period ended September 30, 2012, the combined companies generated combined revenue of roughly $1.6 billion and combined attributable EBITDA of about $579 million, excluding anticipated synergies.

WMS has a iGaming platform, including social and mobile gaming, while Scientific Games has a platform for iLottery, sports book and loyalty/rewards.

The deal is expected to close by the end of 2013.

On Wednesday, SGMS closed at $8.93, while WMS ended at $16.37.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageBuy These Solar Stocks Before They Snapback

Sometimes the market hands you a gift. And it would be foolish not to take it. Thanks to general market read on...

article imageInvestors Are Even More Euphoric And Confident.

As noted on the blog last Thursday, even though the market had been down for three straight weeks, last read on...

article imageThe Butterfly Machine

There’s a phenomenon called the Butterfly Effect. One common quotation is “It has been said that something read on...

article imageWhy Gold Is Undervalued

Gold has been in a bear market for three years. Technical analysts are asking themselves whether they read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.