Scientific Games Corporation has entered into a definitive agreement to sell its lottery business to Brookfield Business Partners LP, along with its institutional partners, in a deal worth $6.05 billion.
The transaction will be based on meeting certain EBITDA targets in 2022 and 2023 and is expected to close in the second quarter of 2022, subject to regulatory approvals. SG Lottery will remain in the Atlanta metro area, with operations expected to continue around the world.
By acquiring Scientific Games’ Lottery division, Brookfield will gain a diversified global lottery business that maintains long-standing relationships with approximately 130 governmental and non-governmental lottery entities in more than 50 countries.
CEO Believes Business Will Drive Scientific Games’ Growth
Scientific Games President and CEO Barry Cottle commented, “This transaction is transformative in accelerating the delivery of our strategy to optimize our portfolio and position us to invest in future growth.”
Cottle further stated that “we have carried out a complete review of the paths to divest the lottery business and are confident that this transaction maximizes value and certainty while minimizing execution complexity and risk, and positions our group and SG Lottery for success”.
Patrick McHugh, CE Scientific Games Lottery, stated: “We are excited about this result and what it means for the future of Scientific Games Lottery and our customers. I am confident that, with Brookfield’s support, we will have the flexibility and agility to expand our broad product portfolio to meet our customers’ needs and maximize the income of lottery recipients around the world, allowing us to seize significant opportunities that we see ahead”.
David Nowak, managing partner of Brookfield Business Partners, said of the agreement: “The Scientific Games Lottery team has built a leading business that has innovated its industry in the convergence of games, technology and services, in retail and digital channels for its global customers. With our capabilities and global reach, we look forward to supporting management in the continued growth of the business.”
SG Lottery has also entered into a transition services agreement with Scientific Games Corporation, which will provide certain financial resources, information technology, regulatory compliance, legal, human resources and facilities for 12 months.
Company will focus on Gaming, iGaming and SciPlay
Scientific Games unveiled plans to divest its sports betting and lottery businesses as part of a strategic review of the business in June of this year. Upon completion of the process, the company will comprise three divisions: Gaming, iGaming and SciPlay, with the intention of capitalizing on the growing convergence of these businesses.
