Brookfield to Buy Lottery Business from Scientific Games for $6.05 Billion

Brookfield to Buy Lottery Business from Scientific Games for $6.05 Billion

Scientific Games Corp, casino equipment as well as online games provider has announced that a definitive agreement has been signed with Brookfield Business Partners LP as well as its institutional partners for the sale of the lottery business.

Consideration for the deal

The total consideration for the deal is $6.05 billion. The cash portion of the deal amounts to $5.825 million. There is an earn-out element of up to $225 million that would be based on the achievement of targets that would mostly be based on earnings before interest, taxation, depreciation, and amortization for 2022 and 2023. This was revealed in a statement by Scientific Games on Wednesday, October 27, 2021.

Even as the transaction is expected to be closed in the second quarter of 2022, there are still customary closing conditions as well as regulatory approvals that need to be secured. This was revealed in a statement by Scientific Games on Wednesday, October 27, 2021.

In September 2021, the company had announced that a deal was made with entertainment as well as sports firm, Endeavor Group Holdings Inc. for $200 million in stock as well as $1 billion in cash for the acquisition of the OpenBet sports betting platform of the company.

In July 2021, the company had made a proposal to acquire the 19% remaining interest in SciPlay Corp, a digital gaming company. The company currently does not own SciPlay Corp.

The strategy behind the deals

Both deals are part of a strategic move by the company. The same was announced by the company in June 2021. The company-wide strategic move was to focus on the iGaming, gaming as well as SciPlay businesses.

Barry Cottle, President and Chief Executive of Scientific Games has stated that the funds that would flow to the company from the sale of the sports betting businesses would provide the company with the flexibility as well as the financial stability to accelerate the growth strategies of the company.

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Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.