Scientific Games Corporation’s board of directors has announced its plan to purchase the remaining 19 percent stock interest in SciPlay, a casual games subsidiary.
Scientific Games’ planned strategy makeover, which would see the Nasdaq gaming technology business function as a solely focused casino games developer and content supplier, has been approved.
Scientific Games chose to split its casual games studio from its flagship gambling technology components, resulting in SciPlay’s independent listing on Nasdaq in 2019.
Scientific Games has completed the rights to acquire the remaining stock it does not currently control in an all-stock transaction, retaining a majority interest in SciPlay.
The statement read: “SciPlay fits perfectly into Scientific Games’ focus on building engaging content and launching great games more fully cross-platformed.”
Outstanding SciPlay shareholders will be provided a premium for their investment, as well as the opportunity to invest in Scientific Games’ restructured business entity, according to Scientific Games.
Lottery and sports betting technology businesses
Chairman Jamie Odell, who is leading Scientific Games’ strategic revamp, stated last month that the company would sell its lottery and sports betting technology businesses in order to reduce the company’s long-term debt of $9.5 billion.
As a result, Scientific Games’ board of directors is considering a “potential IPO,” selling of respective assets, or combination with a SPAC for the sale of its lottery and sports betting divisions.
The industry is keeping a close eye on Scientific Games’ potential divestitures, as the company’s OpenBet segment runs the main sportsbook platform for tier-1 gambling companies, with clients including William Hill, Sky Bet, Ladbrokes Coral, and Paddy Power Betfair.