New York stock exchange-listed Scientific Games, now trading globally as Light & Wonder, has concluded the sale of its lottery business to global asset managers, Brookfield Business Partners, for $5.8bn.
The sale follows a strategic review and will allow Scientific Games to focus on providing content, services and technology to global markets under its new name, Light & Wonder. The lottery business will retain the Scientific Games name and remain based at its current Atlanta headquarters.
“This marks an exciting new chapter for Scientific Games and positions the company to build on the record growth we achieved in 2021 across all parts of our lottery business,” said Pat McHugh, who will continue as CEO of Scientific Games after previously serving as Lottery Group Chief Executive.
“Taking a long-term view of the business, Brookfield is committed to providing Scientific Games with the flexibility and agility necessary to expand our deep product portfolio to meet the evolving needs of our customers and their beneficiaries.”
Barry Cottle, CEO of Light & Wonder, added: “The lottery business sale is a significant step towards streamlining our portfolio and strengthening our balance sheet as we execute on our strategy to transform our business with a singular focus on building great games and franchises to entertain our players wherever and whenever they want to play. The convergence of land-based and digital continues to gain momentum and we are strongly positioned to be a leader in the industry. With the completion of the lottery business sale and the upcoming sale of our Sports Betting Business, we are moving rapidly as we execute on our vision to be a leading cross-platform global game provider and unlock the full potential of Light & Wonder.”
“The proceeds from this transaction and our strong cash profile allow us to accelerate progress on our capital allocation strategy,” said Light & Wonder Chief Financial Officer, Connie James. “We now have the financial flexibility and balance sheet integrity that, combined with our double-digit growth profile and high mix of digital and recurring revenues, give us a tremendous opportunity to continue to drive shareholder value.”
The sale of the OpenBet sports betting business to Endeavor Group’s IMG Arena in expected to close during the second quarter.