Scientific Games Corp., an iGaming software developer in casino, lottery and sports betting, announced that its Lottery division will be sold to Brookfield Business Partners LP and partners for $6.05 billion. According to the press release announcing the purchase, Scientific Games maintains “long-standing relationships with approximately 130 government and non-government lottery entities in over 50 countries.”
The release detailed that the transaction is likely to be finalized in the first half of 2022 following customary regulatory approvals and closing conditions. Business services provider Brookfield Business Partners and its parent organization, Brookfield Asset Management Inc., manage over $625 billion of assets globally.
The purchase will be divided into two payouts. The first is a $5.825 billion cash offer. The second is an additional $225 million contingent on earnings targets for 2022-23, prior to interest, taxation, depreciation and amortization.
Scientific Games president and CEO Barry Cottle said in prepared remarks, “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,” adding, “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.”
Cottle considers the purchase a net positive that will afford financial flexibility to accelerate Scientific Games Corp’s growth strategies in expansion and acquisition focused on the gaming, iGaming and SciPlay industries.