In a shock announcement on Wednesday, industry giants Scientific Games and NYX Gaming Group Limited have announced they have entered into a definitive merger agreement.
Under the terms of the transaction, Scientific Games will acquire NYX and all the outstanding shares of the company for CAD$2.40 per share, equivalent to approximately CAD$775m (US$631m).
The strategic benefits of the deal as explained by the companies will be to firstly create a global digital gaming and lottery ‘powerhouse’. The agreement will also further accelerate the growth of Scientific Games’ Interactive business, whilst doing the same for NYX.
“Scientific Games’ acquisition of NYX will provide immediate and compelling cash value for our shareholders, expand the products and solutions we are collectively able to offer our customers and accelerate the execution of our long-term strategic plan,” said Matt Davey, Chief Executive Officer of NYX.
“We will now have scale, content and product development capabilities, complementary global infrastructure and access to an expanded customer base. We believe Scientific Games is the ideal partner for NYX, and we look forward to working alongside the talented Scientific Games team.”
The agreement will further strengthen Scientific Games’ leadership position, providing the best possible portfolio of content technologies, digital products and services for its global gaming and lottery customers.
“This important transaction creates a global gaming and lottery powerhouse. Scientific Games will be a stronger industry leader offering one of the broadest end-to-end portfolios of engaging content, innovative technologies and digital products and services across gaming and lottery,” said Kevin Sheehan, Scientific Games’ President and Chief Executive Officer.
“This strategic and financially compelling acquisition combines NYX’s premier digital gaming and sports betting platforms and expansive distribution network to our own global, industry-leading content, technologies and digital products and services. NYX ideally positions us to capitalize on the growing online gaming and sports betting markets.”
It is expected that upon completion of the agreement, Davey will oversee a newly created Digital Gaming and Sports Division at Scientific Games. Moreover, Kevin Sheehan will remain as Chief Executive Officer and President of the newly created global juggernaut.