We have a winner if you bet that the $1.5 billion acquisition of slot machine manufacturer WMS Industries by Scientific Games Corporation would increase New York-based Scientific's street cred on Wall Street, please step forward: ding ding ding! The buyout is expected to bring both WMS and Scientific Games in the neighborhood of $100 million in complementary cost-savings between the 2 merged companies, and that's making investors' ears perk up.
Lottery Satisfies Slots
Scientific is on the lookout for a slot machine maker for awhile now; the company provides lottery systems and the equipment to operate the same to numerous US states, Canadian provinces and even some foreign countries. Don't expect Nevada being certainly one of those though; not gonna happen.
For WMS stockholders, life is good; Scientific Games shelled down $26 per WMS share, which was approximately 59 percent over just what the slot manufacturer closed at back on Jan. 31 of this present year.
'We carry on to cultivate more confident with the pending WMS acquisition from both a simple and much more importantly business stability perspective,' said Stifel Nicolaus Capital Markets video gaming analyst Steven Wieczynski about the merger at an investor meeting that is recent.
Gaming Platforms Will Benefit Lottery Customers
And though Nevada may not be getting a state lottery anytime soon, Scientific can still make good use of WMS' social- and i