{"id":1792,"date":"2021-07-16T10:29:43","date_gmt":"2021-07-16T17:29:43","guid":{"rendered":"https:\/\/wagers.com\/staging\/4285\/?p=1792"},"modified":"2021-11-04T10:33:58","modified_gmt":"2021-11-04T17:33:58","slug":"scientific-games-sciplay-buyout","status":"publish","type":"post","link":"https:\/\/wagers.com\/staging\/4285\/news\/scientific-games-sciplay-buyout\/","title":{"rendered":"Scientific Games SciPlay buyout"},"content":{"rendered":"<p><strong>Play it again: <\/strong>To no great surprise, Scientific Games has announced it is to buy the outstanding 19% of the free float of SciPlay that it doesn\u2019t already own as it seeks to refocus on gaming following the news of the sports-betting and lottery division planned sales or IPOs. The all-stock deal involves circa $430m in new Scientific Games shares being issued and values SciPlay at an implied enterprise value of $1.9bn or 9.4x consensus EBITDA for 2022. The tidying up exercise comes at a fortuitous time, according to Truist, giving Scientific Games all the potential upside from leveraging the company\u2019s new games-centric strategy. Jefferies said the logic of the deal was \u201csound from a complexity and cost perspective.\u201d<\/p>\n<blockquote><p><em>\u201cOverall, SGMS remains among the most active transformational catalyst stories in our coverage at present, based on new leadership, a refined and appropriate balance sheet and simplified structure,\u201d the Jefferies team added. \u201cThese all imply considerable upside.\u201d<\/em><\/p><\/blockquote>\n<p><strong>Meet the new boss:<\/strong> The strategic reverse is, as Jefferies said, a \u201crearrangement of the furniture\u201d that also involves the sale of the lottery and sports-betting units which, as the company previously noted, will raise cash to pay down the substantial debt burden. Note in this regard this deal is all-stock rather than cash. SciPlay has enjoyed a brief period of limited independence having been originally spun out from Scientific Games only in 2019. Scientific Games received circa $340m at the time, though according to Truist $30m went on fees. Which only goes to prove that the true winners from constantly evolving and revolving corporate activity are the advisors.<\/p>\n<h3>Also available in today&#8217;s weekend edition of Earnings + More:<\/h3>\n<ul>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/16-jul-weekend-edition-no5\" target=\"_blank\" rel=\"noopener\">MGM\/Entain analyst update<\/a><\/li>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/16-jul-weekend-edition-no5\" target=\"_blank\" rel=\"noopener\">Bragg Gaming Q2 pre-announcement<\/a><\/li>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/16-jul-weekend-edition-no5\" target=\"_blank\" rel=\"noopener\">June GGR for Massachusetts and Louisiana<\/a><\/li>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/16-jul-weekend-edition-no5\" target=\"_blank\" rel=\"noopener\">Accel analyst update<\/a><\/li>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/16-jul-weekend-edition-no5\" target=\"_blank\" rel=\"noopener\">Gaming REIT analysis<\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Play it again: To no great surprise, Scientific Games has announced it is to buy the outstanding 19% of the free float of SciPlay that it doesn\u2019t already own as it seeks to refocus on gaming following the news of the sports-betting and lottery division planned sales or IPOs. The all-stock deal involves circa $430m [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[337,324],"tags":[712,677,591,592,601],"class_list":["post-1792","post","type-post","status-publish","format-standard","hentry","category-analyst-notes","category-news","tag-accel","tag-bragg-gaming","tag-entain","tag-mgm","tag-scientific-games"],"_links":{"self":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1792","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/comments?post=1792"}],"version-history":[{"count":1,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1792\/revisions"}],"predecessor-version":[{"id":1794,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1792\/revisions\/1794"}],"wp:attachment":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/media?parent=1792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/categories?post=1792"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/tags?post=1792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}