Investment company Brookfield Business Partners has completed its acquisition of Scientific Games’ —now doing business as Light & Wonder— global lottery services business, the parties announced on Monday. The gaming business celebrated the closure of the transaction, which was valued at $6 billion.
The company says it is entering its “next era” and, according to Light & Wonder, the transaction will allow it to focus its attention on providing games, services and technology to the global lottery and lottery-administered sports betting markets.
However, the company will retain its name, continuing to operate as Scientific Games, a brand that was first established in 1973. Additionally, Metro Atlanta will continue to serve as the company’s global headquarters, and the entire executive leadership team will remain in place.
“This marks an exciting new chapter for Scientific Games, and positions the company to build on the record growth we achieved in 2021 across all parts of our lottery business,” said Pat McHugh, a 25-year lottery industry veteran who will continue as CEO of Scientific Games after serving as Lottery Group Chief Executive under the previous company structure.
“Taking a long-term view of the business, Brookfield is committed to providing Scientific Games with the flexibility and agility necessary to expand our deep product portfolio to meet the evolving needs of our customers and their beneficiaries,” added the executive.
Toronto-headquartered Brookfield Business Partners is a global business services and industrials company focused on owning and operating high-quality businesses “that provide essential products and services to both the public and private sectors,” according to a press release.
The investment company was established in 1899, and is one of the world’s most successful in this field with more than $690 billion in assets under management. A deal to acquire Scientific Games Corporation’s lottery business was first announced in October 2021.
While the transaction has now basically been completed, the sale of certain international lottery business subsidiaries (Scientific Games International GmbH, and its two subsidiaries) is awaiting regulatory approval in Austria, which is expected to be obtained “by the end of the second quarter of 2022.”
In March 2022, Scientific Games’ gaming and iGaming business rebranded as Light & Wonder, a company that will focus on creating new games and omnichannel player experiences. A rebranding celebration held in Nevada last month was attended by Gov. Steve Sisolak.
Light & Wonder CEO Barry Cottle during the rebranding celebration
The move followed Scientific Games’ decision to sell its lottery and sports betting businesses to buy iGaming and live casino studios, shifting focus on content for casinos and online gambling. Light & Wonder is set to take “a cross-platform approach” to bring game franchises to players, including games in land-based casinos, online and mobile; in both real money and FP2 markets.
“We are thrilled to introduce the world to Light & Wonder, a company that will build great games and franchises that offer players a seamless experience across platforms,” said Light & Wonder Chief Executive Officer Barry Cottle at the time.
“Our powerful new strategy required a powerful new identity to distinguish us and our unique offerings and capabilities,” he added. “Our new name and identity are born from our winning strategy to be the leading cross-platform game company and will inspire our people to make great products for our players.”
Original article: https://www.yogonet.com/international/news/2022/04/05/62085-scientific-games-39-lottery-services-business-sold-to-canadian-asset-manager-brookfield
