{"id":108646,"date":"2021-10-22T12:02:43","date_gmt":"2021-10-22T12:02:43","guid":{"rendered":"https:\/\/www.i-conseils.fr\/index.php\/2021\/10\/22\/investment-firms-reportedly-circling-scientific-games-lottery-unit\/"},"modified":"2021-10-22T12:39:31","modified_gmt":"2021-10-22T12:39:31","slug":"investment-firms-reportedly-circling-scientific-games-lottery-unit","status":"publish","type":"post","link":"https:\/\/www.i-conseils.fr\/index.php\/2021\/10\/22\/investment-firms-reportedly-circling-scientific-games-lottery-unit\/","title":{"rendered":"Investment firms reportedly circling Scientific Games\u2019 lottery unit"},"content":{"rendered":"
Investment firms reportedly circling Scientific Games\u2019 lottery unit
\n
\n<\/p>\n
Two international investment firms are reportedly interested in acquiring <\/span>Scientific Games<\/b> Corporation<\/b>\u2019s (SGC) lottery divisions, according to <\/span>Bloomberg<\/span><\/a><\/span>.<\/span><\/p>\n Citing \u2018people familiar with the matter\u2019, the outlet reported that <\/span>Brookfield Asset Management Inc<\/b>.\u2019s private equity arm and <\/span>Apollo Global Management Inc<\/b> are interested in purchasing the Nasdaq-registered igaming provider\u2019s lottery unit.<\/span><\/p>\n SGC disclosed that it would pursue a \u2018strategic divestment\u2019 of both its sports betting and lottery units in June of this year, weighing up potential options for such a move, including the sale of the assets, a combination with a SPAC or an initial public offering.<\/span><\/p>\n This decision was said to have the unanimous support of the SGC board, including Executive Chairman<\/span> Jamie Odell<\/b> and Executive Vice Chair <\/span>Toni Korsanos<\/b>. Prior to the pandemic, the board had been tasked with reducing the corporation\u2019s debt, which currently stands at $9.5 billion.<\/span><\/p>\n Commenting at the time, Odell stated that his role as Chairman was to take drastic decisions with the aim of \u201crapidly de-leveraging the balance sheet, unlocking the value of the Company\u2019s products and technologies and creating a flexible, nimble company positioned to deliver above-market returns to investors\u201d.<\/span><\/p>\n Bloomberg\u2019s sources stated that should an IPO be pursued, the division could be valued at $75 billion, including debt. However, these same sources also informed the media company that a final decision had not yet been made, and SGC could still remain committed to retaining its lottery subsidiary.<\/span><\/p>\n Should SGC decide to sell its lottery offering, it would represent a significant divergence from its long-held strategy of maintaining its position as a leading systems provider for both land-based and digital verticals across sports betting, igaming and lotteries.\u00a0<\/span><\/p>\n The firm had previously pursued a strong M&A policy in support of this commercial objective, taking over <\/span>NYX Gaming<\/b> and <\/span>OpenBet <\/b>in 2018. The company began to move away from this strategy this year, <\/span>selling the latter to <\/span>Endeavor Holdings<\/b><\/a><\/span> for a total consideration of $1.2 billion.<\/span><\/p>\n Meanwhile, for <\/span>Apollo Global Management, the rumoured interest in SGC represents a continuation of its desire to further its foothold in the international sports betting and gaming industry.<\/span><\/p>\n The investment management firm was a <\/span>keen contender in the bidding contest<\/span><\/a><\/span> to purchase UK heritage bookmaker <\/span>William Hill<\/b> before terminating any potential buyout in November 2020 after rival bidder <\/span>Caesars Entertainment <\/b>launched a \u00a32.9 billion offer.<\/span><\/p>\n