Scientific Games Corporation is set to acquire digital gaming provider NYX Gaming Group Limited after announcing a deal it says will create a “digital gaming powerhouse” while positioning the company to increase its sports betting interests.
Under the terms of the agreement, Scientific Games will acquire all of the outstanding ordinary shares of NYX at a cost of US$631 million, to be financed with cash on hand and debt. It represents a 112% premium on NYX’s closing stock price as of 19 September 2017.
In a statement, Scientific Games President and CEO Kevin Sheehan said, “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.
“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.”
The company said it will create a new Digital Gaming and Sports division upon completion of the acquisition with NYX Chief Executive Officer Matt Davey reporting directly to Mr Sheehan.