Scientific Games Acquires NYX Gaming Group to Become Industry Leaders
When two big companies clash in their interests, they either find ways to outmanoeuvre each other or become one to benefit from better profit margins and the economies of scale. In what could easily be the biggest news for the year, Scientific Games Corporation have announced that they have entered into a definitive agreement to acquire NYX Gaming Group Limited. This will form an industry-leading force across iGaming, iLottery and sports betting businesses.
Paying a 112 percent premium to NYX’s closing stock price on September 19, 2017, which makes a total of CAD$775 million or US$631 million, many changes will happen in the future for both groups in this turn of events.
For Scientific Games, this unlocks new verticals in the sports and iLottery divisions, partly thanks to NYX’s industry-leading OpenBet Sportsbook. Building on NYX’s growth momentum, including its existing worldwide channels, markets (including the US) and customer base, allows Scientific Games to tap into more growth as well. All while strengthening and supporting NYX’s growth in the process.
By creating a global digital gaming and lottery powerhouse and network, both publicly listed companies also benefit from each other’s new intellectual property and expertise, both for land-based and online use. This will allow the creation of products and services that customers haven’t seen before, though there’s no reason for NYX’s fans to be afraid that the company will lose its mojo anytime soon.
That being said, let’s hear from the two companies’ CEOs directly.
Kevin Sheehan, Scientific Games’ President and Chief Executive Officer 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.”
He added: “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.”
Matt Davey, Chief Executive Officer of NYX added: “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.”
“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.”
For more information on new appointments, financial and legal data, refer to
the original report.
That said, are you optimistic about the changes? Leave your comments below.