NEW YORK, Oct. 18, 2013 /PRNewswire/ -- Scientific
Games Corporation (Nasdaq: SGMS) announced today that it has
completed the acquisition of WMS Industries Inc. (NYSE: WMS),
combining leading businesses offering lottery games, gaming
machines and game content, systems, sports betting technology, and
social, mobile and interactive content and services.
"We are pleased to announce the successful completion of our
merger with WMS," said A. Lorne
Weil, Scientific Games' Chairman and Chief Executive
Officer. "The acquisition of WMS is transformational for
Scientific Games as it creates a leading company in the gaming
industry with innovative content, world-class technology and an
expansive geographical footprint, able to supply an extensive range
of products and services to customers throughout the world."
Mr. Weil continued, "We are excited to be able to draw on each
organization's core strengths to offer enhanced capabilities,
systems and content. The combined company will provide a broader
portfolio of products and services to our customers, offer expanded
opportunities for our employees and is poised to deliver meaningful
long-term value for our shareholders."
WMS was acquired for approximately $1.5
billion in cash. In connection with the merger, Scientific
Games entered into a new $2.6 billion
credit facility, consisting of a $2.3
billion term loan facility and a $300
million revolving credit facility that was undrawn at
closing. The term loan facility was used, in part, to finance the
acquisition, to pay off existing indebtedness and to pay fees and
expenses relating to the merger and related financing.
About Scientific Games
Scientific Games Corporation is a leading developer of
technology-based products and services and associated content for
worldwide gaming and lottery markets. The Company's portfolio
includes instant and draw-based lottery games; electronic gaming
machines and game content; server-based lottery and gaming systems;
sports betting technology; loyalty and rewards programs; and
social, mobile and interactive content and services. For more
information, please visit: www.scientificgames.com.
Forward-Looking Statements
In this press release, the Company makes "forward-looking
statements" within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements describe
future expectations, plans, results or strategies and can often be
identified by the use of terminology such as "may," "will,"
"estimate," "intend," "continue," "believe," "expect,"
"anticipate," "should," "could," "potential," "opportunity," or
similar terminology. These statements are based upon
management's current expectations, assumptions and estimates and
are not guarantees of future results or performance. Actual
results may differ materially from those contemplated in these
statements due to a variety of risks and uncertainties and other
factors, including, among other things: competition; material
adverse changes in economic and industry conditions; technological
change; retention and renewal of existing contracts and entry into
new or revised contracts; availability and adequacy of cash flows
to satisfy obligations and indebtedness or future needs; protection
of intellectual property; security and integrity of software and
systems; laws and government regulation, including those relating
to gaming licenses, permits and operations; inability to identify,
complete and integrate future acquisitions; inability to benefit
from, and risks associated with, strategic equity investments and
relationships; failure of our Northstar Illinois joint venture to
meet the net income targets or otherwise to realize the anticipated
benefits under its private management agreement with the Illinois
Lottery; failure of our Northstar New
Jersey joint venture to meet the net income targets or other
requirements under its agreement to provide marketing and sales
services to the New Jersey Lottery or otherwise to realize the
anticipated benefits under such agreement (including as a result of
a protest); failure to realize the anticipated benefits related to
the award to our consortium of an instant ticket concession in
Greece; the seasonality of our
business; disruption of our current plans and operations in
connection with the WMS acquisition; failure to achieve the
intended benefits of the WMS acquisition, including due to the
inability to realize synergies in the anticipated amounts or within
the contemplated time-frames or cost expectations, or at all;
inability to identify and capitalize on trends and changes in the
lottery and gaming industries, including the potential expansion of
regulated gaming via the internet; inability to enhance and develop
successful gaming concepts; dependence on suppliers and
manufacturers; liability for product defects; fluctuations in
foreign currency exchange rates and other factors associated with
international operations; influence of certain stockholders;
dependence on key personnel; failure to perform under our
contracts; resolution of pending or future litigation; labor
matters; and stock price volatility. Additional information
regarding risks and uncertainties and other factors that could
cause actual results to differ materially from those contemplated
in forward-looking statements is included from time to time in the
Company's and WMS' filings with the Securities and Exchange
Commission ("SEC"), including under the heading "Risk Factors" in
the Company's Annual Report on Form 10-K filed with the SEC on
March 12, 2013 and in its subsequent
periodic reports and under the heading "Risk Factors" in WMS'
Annual Report on Form 10-K filed with the SEC on August 29, 2013. Forward-looking statements speak
only as of the date they are made and, except for the Company's
ongoing obligations under the U.S. federal securities laws, the
Company undertakes no obligation to publicly update any
forward-looking statements whether as a result of new information,
future events or otherwise.
Contacts:
Investor Relations:
Cindi Buckwalter, (212) 754-2233
Media Relations:
Aimee Remey, (212) 754-2233
SOURCE Scientific Games Corporation