Gaming technology developer Scientific Games recently announced that it has agreed to acquire digital gaming provider NYX Gaming Group Limited. According to a press release, the purchase – financed with a combination of cash and debt – will be for CAD $2.40 per outstanding share of NYX, amounting to a total of approximately CAD $775 million, or about USD $631 million.
Headquartered in Las Vegas (I was actually going to write “Las Vegas, Nevada,” but then I realized that would be a bit wordy for a poker news site and yes I realize the irony of this parenthetical statement), Scientific Games is one of those companies that the general public doesn’t know about but whose products are everywhere in the gambling world. The company produced the first secure, instant lottery ticket machine back in the mid-1970’s and currently provide the Mega Millions and Powerball POS machines we all see at retailers.
Since its founding four and a half decades ago, Scientific Games has grown way beyond lottery terminals. For instance, from 2006 to 2010, it bought a number of companies that provided gambling machines to UK betting shops and pubs, becoming the market leader in that space.
In 2013, Scientific Games bought WMS Industries, one of the world’s largest slot machine manufacturers, and followed that up in 2014 by acquiring Bally Technologies. If you have gambled in Vegas, you have almost certainly played on one of Scientific’s machines.
“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,” said Kevin Sheehan, Scientific Games’ President and Chief Executive Officer, in a press release. “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.”
NYX develops a multitude of video gambling games – slots, bingo, sports betting, and poker – offering them on mobile, desktop, and land based terminals. It boasts its Open Platform System, which allows it to help operators integrate NYX’s games onto any platform.
Matt Davey, Chief Executive Officer of NYX, said:
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.
