Scientific Games completes acquisition of WMS

It is the fusion of two leading providers of lottery games, gaming machines and game content as well as systems, sports betting technology and social, mobile and interactive content and services. 

"The acquisition of WMS is transformational for Scientific Games as it creates a leading company in the gaming industry with innovative content, world-class technology and an expansive geographical footprint, able to supply an extensive range of products and services to customers throughout the world," added Weil, who continued, "We are excited to be able to draw on each organization's core strengths to offer enhanced capabilities, systems and content. The merged company will provide a broader portfolio of products and services to our customers and offer expanded opportunities for our employees, and it is poised to deliver meaningful long-term value for our shareholders."

WMS was acquired for approximately us$ 1.5 billion in cash. In connection with the merger, Scientific Games entered into a new us$ 2.6 billion credit facility, consisting of a us$ 2.3 billion term loan facility and a us$ 300 million revolving credit facility that was undrawn at closing. The term loan facility was used, in part, to finance the acquisition, to pay off existing debt and to pay fees and expenses relating to the merger and related financing.

Scientific Games is primarily a lottery service provider to several U.S. states and various countries around the world. During a licensing hearing last month in front of Nevada gaming regulators, Scientific Games Chief Financial Officer Jeffrey Lipkin said overall lottery sales worldwide were us$ 275 billion annually, with us$ 65 billion coming from the United States. The merger gives Scientific Games a foothold in the slot machine business through ownership of the casino industry’s third largest manufacturer. 

Scientific Games’ largest shareholder is financier Ronald Perelman, who is ranked 27th on the Forbes 400 list of billionaires with a net worth of us$ 14 billion. Perelman owns 38 percent of the company. “It’s a fabulous deal,” Perelman said in an interview in September.

Perelman, who also owns a large stake in cosmetics giant Revlon, said his investment fund had looked at acquiring “a destination resort” a few years ago, but decided it was more a real estate investment. He explored other ways to enter the casino industry. “We like gaming and it’s a great industry,” Perelman said.