SCIENTIFIC GAMES TO SELL LOTTERY BUSINESS IN $6.05 BILLION DEAL

Scientific Games has announced the sale of its lottery business to Brookfield Business Partners in a deal worth up to US$6.05 billion. 

Under the agreement, Brookfield Business Partners will pay $5.85 billion in cash, and a further performance-based earn-out of up to $225M. The transaction is expected to close in the second quarter of 2022, subject to applicable regulatory approvals and customary closing conditions.

Scientific Games Lottery currently has long-term partnerships with around 130 government and non-government run lotteries in more than 50 countries. The business provides turn-key solutions covering the entire lottery ecosystem, including instant and terminal-generated games, sports betting, lottery systems and retail technology, and the iLottery market. The company says it powers around 60% of all instant product retail sales globally. 

Regarding the news, Barry Cottle, President and CEO of Scientific Games, said: “This transaction is transformative in accelerating the delivery of our stated strategy to optimize our portfolio, aggressively de-lever our balance sheet and position us to invest in future growth. We conducted a thorough review of paths to divest the Lottery business and we are confident that this transaction maximizes value and certainty while minimizing complexity and execution risk, and positions both Scientific Games and SG Lottery for continued success along their unique growth trajectories.

“The significant near-term proceeds from this transaction as well as our previously announced sale of Sports Betting will transform our balance sheet and provide the financial flexibility to invest organically and inorganically to accelerate our strategies. This marks a major milestone and puts us on a clear path to achieve our vision to become the leading cross-platform global game company and unlock our full value for shareholders.”

David Nowak, Managing Partner, Brookfield Business Partners, added: “The Scientific Games Lottery team has built a leading business, which has innovated its industry, at the convergence of games, technology and services, across retail and digital channels for its global customers. With our capabilities and global reach, we look forward to supporting management in the continued growth of the business.”

Just last month, Endeavor Group Holdings, the NYSE-listed global sports and entertainment company, agreed to acquire content, platform, and service provider OpenBet from Scientific Games Corporation for US$1.2 billion.