Scientific Games has completed its $1.5bn acquisition of WMS Industries, with the combined entity now divided into gaming and lottery arms as it looks to strengthen its position in each market.
Scientific Games chairman and chief executive A. Lorne Weil described the deal as “transformational” for the businesses, forming “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.”
Weil added that the acquisition would also “offer expanded opportunities for employees and is poised to deliver meaningful long-term value for shareholders.”
First announced in January this year, Scientific Games paid $26 per common share of WMS, representing a 59 per cent premium on the supplier’s share price at the time of the announcement. Excluding anticipated synergies, the companies generated revenues of around $1.6m, with EBITDA of approximately $579m for the 12 months ending September 30th 2012.
The deal will see a reshuffle of the Scientific Games management team, with the gaming and lottery divisions being headed up by William Huntley and James Kennedy respectively, while a number of WMS employees take on management roles for the group.
WMS CFO Scott Schweinfurth becomes chief financial officer of gaming and chief integration officer for Scientific Games, while senior vice president of product development Fredrick Gabbard has seen his WMS role expanded to one covering the entire company. Orrin Edidin, formerly CEO of WMS, and currently CEO and president of its iGaming division Williams Interactive, becomes senior vice president, strategy and business development of gaming, reporting directly to Weil.
Shares in Scientific Games Corporation (Co. Data) (NASDAQ:SGMS) closed at $18.42 per share in New York on Friday, up 1.15 per cent.