Shares of gaming services provider SciPlay Corp. (NASDAQ:SCPL) are skyrocketing today after cross-platform games provider Light & Wonder (NASDAQ:LNW) submitted a proposal to the former’s Board for acquiring the remaining 17% stake in the company.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
LNW is proposing to acquire the stake (which it does not own at present) for $20 per share. This pegs the all-cash transaction at nearly $442 million and upon closing SCPL would function as a subsidiary of LNW.
Importantly, the acquisition would allow LNW a seamless collaboration with SCPL and boost its cross-platform strategy. Further, this would also result in flexibility to invest cash for the combined entity.
The deal implies a $2.1 billion enterprise value for SCPL and offers a 28.5% premium over the stock’s May 17 closing price. LNW already owns a 98% voting interest in SCPL.
With today’s price gains, SCPL shares have now surged 24% so far this year.
Read full Disclosure