Shares of gaming services provider SciPlay Corp. (NASDAQ:SCPL) are skyrocketing today after cross-platform games provider Light & Wonder (NASDAQ:LNW) submitted a proposal to the former’s Board for acquiring the remaining 17% stake in the company.
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LNW is proposing to acquire the stake (which it does not own at present) for $20 per share. This pegs the all-cash transaction at nearly $442 million and upon closing SCPL would function as a subsidiary of LNW.
Importantly, the acquisition would allow LNW a seamless collaboration with SCPL and boost its cross-platform strategy. Further, this would also result in flexibility to invest cash for the combined entity.
The deal implies a $2.1 billion enterprise value for SCPL and offers a 28.5% premium over the stock’s May 17 closing price. LNW already owns a 98% voting interest in SCPL.
With today’s price gains, SCPL shares have now surged 24% so far this year.
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