Light and Wonder is believed to have fended off competition for Grover Gaming from groups including the Australian-listed Aristocrat Leisure and Churchill Downs Incorporated.
The NASDAQ and ASX-listed Light and Wonder used debt to fund its $US1.05bn ($1.65bn) Jarden-advised deal that will position it as the leader in the fast-growing charitable gaming space. It has outlaid $US850m upfront and will spend a further $US200m over four years subject to earnouts.
Grover Charitable Gaming, owned by Garrett Blackwelder, is a leading provider of electronic pull-tabs for charitable gaming in the US, with more than 10,000 installed recurring revenue units across five US states.
It was advised in negotiations by Goldman Sachs.
The deal price equates to 7.7 times earnings before interest, tax, depreciation and amortisation for last year. Annual adjusted EBITDA was $US111m.
Light & Wonder is a gaming machine system creator with a market value of almost $13bn.
Churchill Downs evolved from one racetrack in Kentucky to a publicly traded US group with racetracks, online wagering and casinos.
Meanwhile, the $48bn Aristocrat that develops gaming content and technology could have its sights on another major acquisition, with some suggesting the US-based entertainment machine business Interblock could be within its reach. Las Vegas-based Interblock describes itself as the world’s leading developer and supplier of award-winning electronic table gaming products.
The Brookfield-backed Oaktree Capital owns the business – the same alternative investor currently proposing to buy debt in Australia’s Star Entertainment as part of a recapitalisation plan.
Sources estimate that Interblock could be worth about $1bn.
Oaktree purchased the business in 2022 from Aruze Gaming, which had filed for bankruptcy.
Interblock is the No.1 supplier of electronic games in North and Latin America, Europe, Middle East, and Africa and Asia Pacific, and creates new software and products for customers globally.
Aristocrat purchased the NASDAQ-listed Neo Group for $1.8bn including debt, in 2024.It tried to buy Playtech in 2022 for $3.9bn but the deal failed to gain support from shareholders in its London-listed target.
Aristocrat, founded by Australian billionaire Len Ainsworth and one of the world‘s largest gambling machine companies, had signalled to the market for some time it planned to embark on a major acquisition.
Last week, it announced the findings of its strategic review, saying it had completed the sale of Plarium Global to Modern Times Group for up to $US820m and it would restructure its Big Fish Games operations, with no new game development and reduced investment, and it would retire the Pixel United reporting segment.
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