Oct 28, 2021 Newsdesk Latest News, Top of the deck, World  
Casino equipment and online games provider Scientific Games Corp has announced that it has signed a definitive agreement to sell its lottery business to Brookfield Business Partners LP and its institutional partners, for a total consideration of US$6.05 billion.
The offer consists of US$5.825 billion in cash and an earn-out of up to US$225 million based on the achievement of certain targets relating to earnings before interest, taxation, depreciation and amortisation for 2022 and 2023, said Scientific Games in a Wednesday press release. The transaction is likely to be closed in the second quarter of 2022, subject to applicable regulatory approvals and customary closing conditions, it added.
Brookfield Business Partners is a business services provider, part of Brookfield Asset Management Inc, a global alternative-asset manager with over US$625 billion of assets under management, according to its corporate website.
In Wednesday’s release, Scientific Games said its lottery business had “long-standing relationships with approximately 130 government and non-government lottery entities in over 50 countries”.
Barry Cottle, Scientific Games’ president and chief executive, said in prepared remarks: “This transaction is transformative in accelerating the delivery of our stated strategy to optimise our portfolio, aggressively de-lever our balance sheet and position us to invest in future growth.”
He added: “We conducted a thorough review of paths to divest the lottery business and we are confident that this transaction maximises value and certainty while minimising complexity and execution risk, and positions both Scientific Games and SG Lottery for continued success along their unique growth trajectories.”
The CEO said additionally that the proceeds from the sale of the lottery arm – along with funds from the previously-announced sale of its sports betting business – would provide the “financial flexibility” to “accelerate” the company’s growth strategies.
In late September, Scientific Games said it had struck a deal to get US$1 billion in cash and US$200 million in stock from Endeavor Group Holdings Inc, a sports and entertainment firm, for the latter to acquire control of Scientific Games’ OpenBet sports betting platform.
The two deals were part of a company-wide strategic review, announced in June by Scientific Games. The U.S.-listed firm stated the move would allow the group to focus on its gaming, iGaming, and SciPlay businesses.
In July, Scientific Games made a proposal to acquire the remaining 19 percent of equity interest in digital gaming company SciPlay Corp that it does not currently own.
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