Stock:
Symbol Lookup
Register | Login
...
History
...
...

Pre Market | Dow Jones | Gold | Newsletters | Learn


Scientific Games to Acquire WMS Industries (SGMS, WMS)

Thursday, January 31, 2013 2:33 PM
With an aim to reinforce its traction in gaming business machines and expand its geographical presence, Scientific Games Corp. (NASDAQ: SGMS) announced on Thursday that it agreed to acquire WMS Industries Inc. (NYSE: WMS) in deal estimated at $1.42 billion. Key Points
  • Scientific Industries will pay $26 per share to acquire WMS Industries
  • The transaction represents a premium of 59% over WMS shares’ closing price of $16.37 as on Wednesday on the NYSE
  • Both companies' boards have unanimously approved the deal, and it expected close by the year-end, subject to an approval from WMS’s shareholders
Following the announcement, shares of WMS Industries rallied Scientific Industries, which develops lottery instant tickets, lottery and video gaming systems , said that the deal includes $85 million worth debt and cash on hand estimated at $55 million as of September 30. WMS Industries, which competes with Bally Technologies Inc., manufactures and distributes gaming machines and interactive gaming content. Commenting over the proposed deal, A. Lorne Weil, Chief Executive of Scientific said in a statement, “The acquisition of WMS is transformational for Scientific Games, enabling us to offer a complete portfolio of lottery and gaming products and services to both new and existing customers around the world”. “We expect to combine our game content, technology, operational capabilities and respective geographic footprints to create an enterprise poised to capitalize on significant growth opportunities around the globe,” added Lorne. Scientific also said that planned acquisition will bring in synergies through shared costs, economy of scale, stronger revenue growth. Besides, the Company said that it will seek opportunities to cross-sell products to each company’s respective customers.
PRINT

FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2014 the year you get RICH!

Latest Headlines

Ackman to pay Herbalife whistleblowers' legal fees, not lost payAckman to pay Herbalife whistleblowers' legal fees, not lost pay
BOSTON (Reuters) - Activist investor William Ackman, who is betting more than $1 billion that Herbalife is a pyramid scheme, will cover legal fees and damages for whistleblowers who have spoken out ...
UPS ratifies new five-year labor agreementUPS ratifies new five-year labor agreement
April 24 (Reuters) - United Parcel Service Inc, the world`s biggest courier company, said on Thursday it ratified a five-year contract with higher wages and benefits for 125,000 unionized employees re...
Visa says revenue growth to slow further this quarterVisa says revenue growth to slow further this quarter
(Reuters) - Visa Inc <V.N>, the world`s largest credit and debit card company, said its revenue growth would slow this quarter due to a strong U.S. dollar, sending the company`s shares down abou...
Microsoft beats Wall Street on new CEO debutMicrosoft beats Wall Street on new CEO debut
SEATTLE (Reuters) - Microsoft Corp`s <MSFT.O> new chief executive got off to a winning start with Wall Street on Thursday as the world`s largest software company eased past analysts` profit es...
Amazon posts higher-than-expected first-quarter revenueAmazon posts higher-than-expected first-quarter revenue
SAN FRANCISCO, April 24 (Reuters) - Amazon.com Inc reported a 32-percent jump in first-quarter net income on Thursday as the largest U.S. online retailer`s revenue rose a better-than-expected 23 perce...

Loading Headlines...
 

Stock Market

Track the stock market today with the latest news and information on all things investing! Watch your stocks perform throughout the day and watch the breaking stock market news.

Feedback | disclaimer | privacy policy

Stock Market News

The Stock Market is ever changing. Keep up on your stock market news.

Stock Market Newsletters

Read up on your favorite stock market newsletters.


Learn the Stock Market

Sharper your stock trading skills with our stock market education section.