If you bet that the $1.5 billion acquisition of slot machine manufacturer WMS Industries by Scientific Games Corporation would increase New York-based Scientific’s road cred on Wall Street, please step ahead: ding ding ding, we have a winner! The buyout is expected to create both WMS and Scientific Games in the neighbor hood of $100 million in complementary cost-savings between the two merged companies, and that is making investors’ ears perk up.
Lottery Satisfies Slots
Scientific has been on the lookout for the video slot maker for awhile now; the company provides lottery systems plus the equipment to run the same to numerous American states, Canadian provinces and even some foreign countries. Don’t rely on Nevada being one of those though; not gonna happen.
For WMS stockholders, life is great; Scientific Games shelled down $26 per WMS share, that was roughly 59 percent over just what the slot manufacturer closed at back on Jan. 31 of this season.
‘We carry on to grow more comfortable with the pending WMS acquisition from both a fundamental and more importantly company stability perspective,’ said Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski about the merger at an investor meeting that is recent.
Gaming Platforms Will Benefit Lottery Customers
And although Nevada may not be getting a state lottery anytime soon, Scientific can nevertheless make good use of WMS’ social- and interactiv Continue reading “Scientific Games Corp. Buying WMS to Create Major Lottery, Slot Brand”