Las Vegas-based manufacturers of Light & Wonder gaming equipment acquires a North Carolina-based SLOT machine content company in a cash agreement of $ 850 million, the companies announced.
Analysts praise Light & Wonder’s acquisition of Grover Charitable Gaming, a privately owned Greenview, North Carolina, companies that offer land-based, online and mobile game content in five US states.
In addition to the purchase price of $ 850 million, Light & Wonder will pay a four -year revenue -based service of up to 200 million cash.
The deal depends on legislative approvals and is expected to close during the second quarter.
“Grover Gaming is a leading player in charity games, a category that has experienced significant growth in recent years,” said Light & Wonder President and CEO Matt Wilson in an edition.
“This transaction complements our position as the leading global gaming company for platforms by adding another compulsory regulated adjoining to our profile,” he said.
Light & Wonder specializes in developing content over land-based and igaming platforms.
“It is important that there are exciting incremental revenue opportunities to be realized by utilizing Light & Wonder’s proven land -based game content for a new and loyal customer base,” Wilson said. “We look forward to continuing to collaborate with Grover Gaming’s customers and build on their strong commitment to customer service.”
Analysts see the acquisition as a win for Light & Wonder.
“We believe that the acquisition improves LNWS growth outlook when the company appears to be further penetrating markets by utilizing its existing research and analysis without taking significant incremental costs,” wrote gaming analyst Barry Jonas from Truist Securities in a report to investors.
“Light & Wonder continues to perform on its way to $ 1.4 billion in (adjusted cash flow) in 2025, but wants to penetrate gaming orientations as roads for future growth. The acquisition of Grover Gaming assets allows LNW to utilize its content to new customers in the charity game that have high obstacles to entry. “
Chad Beynon, an analyst for the gaming industry with Macquerie, raised Light & Wonder’s target share price to $ 122 from $ 117 per share.
“LNW’s acquisition of Grover Gaming’s charity gaming assets adds a long -term growth driver through enlargement to a new adaptation,” Beynon said in a note to investors.
According to the terms of the agreement, the Grover founder Garrett Blackwelder will collaborate with Light & Wonder to help drive the business’s continued success over the next three years.
Contact Richard N. Velotta at rvelotta@ theplayerlounge.com or 702-477-3893. Follow @rickvelotta at X.
