Scientific Games Corp. SGMS, -2.42% said Thursday that it had reached a deal to acquire the remaining 19% of equity interest in digital gaming company SciPlay Corp. SCPL, +13.05%, beyond what it already owns. Upon completion of the transaction, SciPlay would be a wholly owned subsidiary of Scientific Games, which offers casino and gaming services. In a release, Scientific Games shared a letter it wrote to SciPlay’s board of directors in which it argued that SciPlay would benefit “from increased trading liquidity as a result of being part of a pro forma entity with a market capitalization of $7.0 billion,” based on both stocks’ closing prices Wednesday, as well as a significantly larger public float. Scientific Games announced late last month that it planned to divest its lottery and sports-betting businesses while focusing on gaming. Shares of SciPlay are up about 5% in premarket trading Thursday. They’ve gained 10.9% so far this year as Scientific Games shares have gained 64%. The S&P 500 SPX, -0.24% is up 16.5% so far this year.
View Article Origin Here
