Scientific Games to sell lottery business to Brookfield Business Partners for $6.05bn
Scientific Games said the move will accelerate the company’s strategic vision and focus on being a leading cross-platform global game company.
Scientific Games announced it has entered into a definitive agreement to sell its global lottery business to Brookfield Business Partners for $6.05bn in total consideration.
Brookfield is an affiliate of Toronto, Canada-based Brookfield Asset Management Inc.
Scientific Games has approximately 130 lottery entities in more than 50 countries.
Brookfield will pay $5.83bn in cash and an earn-out of up to $225m based on the achievement of certain EBITDA targets in 2022 and 2023. The transaction is expected to close in the second quarter of 2022.
Barry Cottle, President and Chief Executive Officer of Scientific Games, said, “This transaction is transformative in accelerating the delivery of our stated strategy to optimize our portfolio, aggressively de-lever our balance sheet and position us to invest in future growth. We conducted a thorough review of paths to divest the Lottery business and we are confident that this transaction maximizes value and certainty while minimizing complexity and execution risk, and positions both Scientific Games and SG Lottery for continued success along their unique growth trajectories.”
David Nowak, Managing Partner, Brookfield Business Partners, said, “The Scientific Games Lottery team has built a leading business, which has innovated its industry, at the convergence of games, technology and services, across retail and digital channels for its global customers. With our capabilities and global reach, we look forward to supporting management in the continued growth of the business.”
The deal’s announcement comes ahead of Scientific Games’ third quarter earnings report set to be released on Nov. 9.
In its most quarterly earnings, Scientific Games reported lottery revenue of $266m for the quarter ending on June 30, 2021. Lottery represented 30% of the company’s total $880m consolidated revenue for the quarter.
During pandemic-riddled 2020, lottery led all Scientific Games business segments with $209m in revenue, compared to SciPlay ($166m) Gaming ($91m), and Digital ($73m).
Cottle said, “The significant near-term proceeds from this transaction as well as our previously announced sale of Sports Betting will transform our balance sheet and provide the financial flexibility to invest organically and inorganically to accelerate our strategies. This marks a major milestone and puts us on a clear path to achieve our vision to become the leading cross-platform global game company and unlock our full value for shareholders.”
Players trust our reporting due to our commitment to unbiased and professional evaluations of the iGaming sector. We track hundreds of platforms and industry updates daily to ensure our news feed and leaderboards reflect the most recent market shifts. With nearly two decades of experience within iGaming, our team provides a wealth of expert knowledge. This long-standing expertise enables us to deliver thorough, reliable news and guidance to our readers.
Latest News
