Scientific Games to divest Lottery and Sports Betting businesses29th June 2021 12:38 pm GMT
New York-listed Scientific Games has revealed plans to divest its Lottery and Sports Betting businesses as it focuses on becoming a leading content provider for the online and land-based gaming sectors.
As part of its strategic review, the company is evaluating strategic alternatives to execute the divestitures for each business, including an initial public offering (IPO) or a combination with a special purpose acquisition company (SPAC), or a sale or a strategic combination with another business.
“When I joined the board in September 2020, I told stakeholders that we were focused on rapidly de-leveraging the balance sheet, unlocking the value of the company’s products and technologies and creating a flexible, nimble company positioned to deliver above-market returns to investors,” said Scientific Games executive chair Jamie Odell.
“Today, we have announced major initiatives aimed at achieving each of these key objectives, recognizing significant value in each of the businesses and positioning the company for sustainable growth, all as a result of the dedicated work of our teams.”
Scientific Games president and CEO Barry Cottle said that the move will accelerate the supplier’s path to become a content-led growth company focused on both the land-based and digital gaming markets.
“Our company will be positioned to build great games that define the future of gaming, supported by platforms that power the best operators in the world,” he continued. “We believe these steps will enable us to capitalize on the high growth potential of each of our businesses, including their expanding digital content offerings and platforms, unlocking value for shareholders, customers, and employees.
“Each of our businesses will be better positioned to partner with their respective customers and to deliver long-term growth and profitability.”
Following the divestments, the new Scientific Games will consist of its Gaming, iGaming and SciPlay businesses.
“We will capitalize on the increasing convergence of these businesses, as players look to play their favorite games wherever and whenever they want to play,” said Cottle. “As the leading cross-platform global game company, we are uniquely positioned to take advantage of the incredible industry transition that is underway.
“Given this significant opportunity, we are targeting our digital businesses to be comparable in size to the land-based gaming business within three years. I’m confident that, with these steps, we are well positioned for future growth prospects.”
Shares in Scientific Games Corporation (NSW:SGMS) closed at $75.96 per share in New York Monday. The company’s shares have gained more than 435 per cent in the past year.