Scientific Games to buy NYX Gaming in C$775 million deal

Sep 21, 2017 8:52 AM

Scientific Games Corp., quickly following its announcement that it’s changing the company’s state of incorporation from Delaware to Nevada, has announced a new acquisition.

The casino equipment and lottery services provider now says it will buy Canada's NYX Gaming Group Ltd. for about C$775 million ($632 million US), including debt, expanding its digital gaming, sports wagering platform and online gambling portfolio.

Scientific Games will acquire all of the outstanding ordinary shares of NYX for C$2.40 per share.

The deal comes just two months after Scientific Games said it would buy UK-based Red7Mobile, a maker of mobile and desktop casino games for an undisclosed amount.

The companies said in a joint statement that the purchase will be funded through cash and debt, is expected to close in the first quarter of 2018,

The move to Nevada, announced earlier this week is being called a “reincorporation merger” involving a Nevada-based wholly-owned subsidiary of Scientific Games. The move is still subject to shareholder approval. The announcement did not elaborate on either the reason for the decision or the timetable for the process.

Scientific Games, initially a lottery equipment and management services provider, purchased the then top-four U.S. slot supplier WMS Industries for $1.5 billion in 2013. Later that year, slot machine and casino floor management system supplier Bally Technologies Inc. acquired casino electronic tables games and electronic shuffler specialist SHFL Entertainment Inc, known by the brand name Shuffle Master, for $1.3 billion. In November 2014, Bally and the Shuffle Master brands were absorbed into Scientific Games in a deal valued at $5.1 billion.

Scientific Games stated in the release, “The reincorporation merger will not result in any change in the company’s name, headquarters, business, management, location of offices, assets, liabilities or net worth, other than as a result of the costs incident to the reincorporation merger.”