Light & Wonder’s business transformation has progressed after finalising the previously announced $5.8bn divestment of its lottery business to Brookfield Business Partners.
The company will maintain operations under the Scientific Games name, with Metro Atlanta to continue to serve as global headquarters and the entire executive leadership team to 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, who will continue as CEO for 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.”
Light & Wonder, which last month pulled back the curtain on a rebrand from its previous Scientific Games moniker with a “singular focus to be the leading cross-platform global game company”, says that the sale marks “a major milestone” and delivers one key aspect of a strategic company review.
Through the new proceeds gained from the sale, L&W will focus on the three priority areas of debt reduction and share buy-backs in a bid to return substantial capital to shareholders.
Furthermore, the company also stipulates that it will maintained a disciplined investment in key growth opportunities, adding that priority will be given to using its capital for buy-backs, debt reduction and organic investments unless convinced that M&A activity will deliver greater long-term value.
“The lottery business sale closing is a significant step towards streamlining our portfolio and strengthening our balance sheet as we execute on our strategy to transform our business with a singular focus on building great games and franchises to entertain our players wherever and whenever they want to play,” explained Barry Cottle, L&W CEO.
“The convergence of land-based and digital continues to gain momentum and we are strongly positioned to be a leader in the industry.
“With the completion of the lottery business sale and the upcoming sale of our sports betting business, we are moving rapidly as we execute on our vision to be a leading cross-platform global game provider and unlock the full potential of Light & Wonder.
“This also positions the lottery business for success as a stand-alone company completely focused on innovating for its global lottery customers.”