Scientific Games Corporation has agreed to terms with WMS industries to acquire the slot game manufacturer for $1.5 billion. The acquisition combines two industry leaders in slot and lottery development and creates opportunities for Scientific Games to expand in the global market.
“The combination of Scientific Games and WMS yields tremendous benefits to our customers, shareholders and employees,” said Brian R Gamache, WMS’ chairman and CEO. “We view this transaction as the next logical and strategic step in offering continued innovation in gaming.
Scientific Games’ acquisition of WMS Industries merges two leaders in the gaming industry and has already boosted WMS share prices by 56% to $26.60. The gaming developer is a major supplier of lottery and video gaming systems to several United States and European based gambling establishments, including the Delaware Lottery. Scientific Games acquires a major supplier of slot and video gaming machines as well as a developer of online gaming.
Both companies have rapidly developed over the past few years and recently reported combined revenues of $1.6 billion for fiscal year 2012. WMS Industries alone had 2013 first quarter turnover of $159.1 million and recently found success in its launch of Jackpot Party social casino on the Facebook platform during July of 2012.
The two companies hope the acquisition will lead to the development of new products, the expansion of its market reach, and acceleration of key initiatives. Furthermore, Scientific Games hopes to take advantage of the growing online gaming market around the world. The company hopes to utilize gaming technology to offer products on social websites and mobile phones. Both corporations have developed online gaming platforms for lottery, sports book, and social games.