Scientific Games Corp. Buying WMS to Create Major Lottery, Slot Brand
We have a winner if you bet that the $1.5 billion acquisition of slot machine manufacturer WMS Industries by Scientific Games Corporation would increase New York-based Scientific’s street cred on Wall Street, please step forward: ding ding ding! The buyout is anticipated to create both WMS and Scientific Games in the community of $100 million in complementary cost-savings between the two merged companies, and that is making investors’ ears perk up.
Lottery Matches Slots
Scientific happens to be on the lookout for a slot machine maker for awhile now; the organization provides lottery systems plus the equipment to perform the same to a lot of US states, Canadian provinces and even some foreign countries. Don’t rely on Nevada being certainly one of those though; not gonna happen.
For WMS stockholders, life is great; Scientific Games shelled out $26 per WMS share, that was approximately 59 percent over what the slot manufacturer shut at back on Jan. 31 of this year.
‘We continue to grow more confident with the pending WMS acquisition from both significant and more importantly business stability perspective,’ said Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski about the merger at a recent investor conference.
Gaming Platforms Will Benefit Lottery Customers
And even though Nevada may never be getting a state lottery anytime soon, Scientific can still make good use of WMS’ social- and interacti (more…)