News INTERNATIONAL UPDATE Scientific Games buys WMS
WMS Industries is be acquired by rival Scientific Games Corp. for $1.42bn in cash and debt
Scientific Games and WMS Industries have entered into a definitive agreement under which Scientific Games has agreed to acquire WMS for $26.00 in cash per common share or approximately $1.5bn.
The transaction, which was unanimously approved by both the Scientific Games and WMS Boards of Directors, combines two leading companies in the gaming industry to create an organization that will supply an extensive range of products and services to public and private sector lottery and gaming customers throughout the world. Scientific Games is a leader in the supply of lottery instant tickets, lottery and video gaming systems and server-based gaming. WMS is a leader in the supply of gaming machines and interactive gaming content.
"The acquisition of WMS is transformational for Scientific Games, enabling us to offer a complete portfolio of lottery and gaming products and services to both new and existing customers around the world," said A. Lorne Weil, Scientific Games' Chairman and Chief Executive Officer. "We expect to combine our game content, technology, operational capabilities and respective geographic footprints to create an enterprise poised to capitalize on significant growth opportunities around the globe."
"This combination will diversify Scientific Games' revenue base, expand margins and propel future growth opportunities. Importantly, as we realize efficiencies from our increased size and scope, we should be able to deliver meaningful value to shareholders through the deal's immediate earnings per share accretion, significantly improved free cash flow and anticipated synergies," said Jeffrey S. Lipkin, Scientific Games' Chief Financial Officer.
"The combination of Scientific Games and WMS yields tremendous benefits to our customers, shareholders and employees," said Brian R. Gamache, WMS' Chairman and Chief Executive Officer. "We view this transaction as the next logical and strategic step in offering continued innovation in gaming. Shareholders will enjoy a meaningful premium for their shares and employees will have expanded career opportunities as part of a larger, broader and more diverse organisation.
February 2013 PAGE 24
FRANK FAHRENKOPF President and CEO of the American Gaming Association (AGA), is stepping down from his AGA position, effective from June 30, 2013. The AGA board
and Fahrenkopf have been involved in succession planning over the course of the past two years and reached an agreement in December 2011 on the date when he would step down. Fahrenkopf has been the first and only chief executive of the AGA since its inception in July 1995.
We are delighted with this transaction and look forward to working with our new colleagues at Scientific Games."
LORNE WEIL,
Chairman, Scientific Games.
“The acquisition of WMS is
transformational for Scientific Games.”
(Top) ORRIN EDIDIN, CEO WMS Industries.
Scientific Games expects to achieve synergies through revenue growth, shared costs and larger scale, as well as by monetizing its significant US tax attributes. The combined company will also be able to efficiently utilise shared manufacturing, engineering, software, field maintenance and customer service to drive growth and cost savings. Excluding anticipated synergies, the combined companies generated combined revenue of approximately $1.6bn and Combined Attributable EBITDA of approximately $579m over the trailing 12-month period ended September 30, 2012.
JPM adds E-Service to technical support team
JPM International has announced another key partner appointment with E-Service now responsible for providing first line technical support to its customers.
JPM’s Paul Bursnell said: “JPM’s commitment to the UK analogue market has resulted in significant additional business and it’s imperative that our customers’ trust is rewarded with exemplary after sales service. E-Service has a great track record with prestigious gaming brands and has developed a support infrastructure which is second to none. JPM has a reputation built on the development of exciting and profitable games and this agreement enables us to continue on this path without diverting resources to replicate something that is
already in place. We’re confident that our customers will appreciate the increased levels of support and economies of scale that this arrangement will bring.”
The arrangement will see E- Service managing JPM’s software bulletin board and providing first line technical assistance, a repairs and advance replacement facility plus parts delivery, all under the watchful eye of dedicated Senior Service Technician James Armstrong.
E-Service’s Mike Clokie was clearly delighted with the agreement: “JPM is making increasingly strong inroads into the UK market and we’re excited to be working with such a prestigious brand,” commented Mr. Clokie.
Jim Murren, chairman and CEO of MGM Resorts International, said: “There’s no doubt that Frank’s political savvy has been instrumental in protecting and promoting our industry’s interests on Capitol Hill, but the impact of his leadership stretches well beyond Washington. From the very start, he understood the need to unify the industry in addressing key issues like responsible gaming and diversity, programs that are at the cornerstone of how we do business. It hasn’t always been easy to bring our disparate group together, but he did it.”
MALMO-BASED BETTING PROMOTION, a company that makes markets, manages risk and provides liquidity for bookmakers and betting exchanges, has announced strong growth in its B2B operation as well as improved margins and profit for its own proprietary trading business in its first release of the New Year.
During the last quarter of 2012, the B2B operation has seen its gross margin increase from 1.1 per cent to 2.41 per cent over the same period. Fourth quarter results highlight on overall margin of 0.89 per cent for the business, an increase of 48 per cent on the same period last year. This has been derived from improved trading systems and selective markets. Sales of the B2B bookmaker product has also shown substantial growth with a portfolio over 20 clients currently launched and in development. The group reports an increased quarter on quarter betting turnover of 94 per cent for its B2B product.
Jonas Ornstein, new CEO and existing Board Member, said: “The company has been left in very good shape following the recent departure of former CEO, Johan Moazed, and I wish to thank him for all his efforts over the last 10 years.”
Mr. Jonas has recently reported a new management structure with sees Richard Hogg retain his position as CMO and continuing the sales, marketing as well as business development of the business as a whole, and Oliver Zammit heading up finance and HR as on-going CFO. Robert Wintersteller has been moved to Product Manager ensuring the business has a range of products to meet its own as well as client demands and Lars Berglund has moved to Market Manager working on markets and risk management.
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