If you bet that the $1.5 billion acquisition of slot machine game manufacturer WMS Industries by Scientific Games Corporation would increase New York-based Scientific’s street cred on Wall Street, please move forward: ding ding ding, we’ve a success! The buyout is anticipated to bring both WMS and Scientific Games in the neighborhood of $100 million in complementary cost-savings between the 2 merged companies, and that is making investors’ ears perk up.
Scientific was on the lookout for the slot machine maker for awhile now; the company provides lottery systems and the equipment to perform the same to numerous US states, Canadian provinces as well as some foreign nations. Don’t rely on Nevada being certainly one of those though; not gonna happen.
For WMS stockholders, life is great; Scientific Games shelled out $26 per WMS share, which was approximately 59 percent over just what the slot manufacturer closed at back on Jan. 31 of this season.
‘We continue to develop more comfortable with the pending WMS acquisition from both significant and much more importantly business stability perspective,’ said Stifel Nicolaus Capital Markets video gaming analyst Steven Wieczynski about the merger at an investor meeting that is recent.
And though Nevada may not be getting a state lottery anytime quickly, Scientific can nevertheless make good use o (more…)