Light & Wonder, Inc. (ASX:LNW) Acquires Grover Gaming’s Charitable Gaming Assets
Acquisition Details
Light & Wonder, Inc. (ASX:LNW) has entered into a definitive agreement to acquire Grover Gaming’s charitable gaming assets for $850 million in cash at closing, with an additional earn-out potential of up to $200 million based on revenue and expansion metrics over four years. The transaction is subject to customary closing conditions, including regulatory approvals.
Strategic Rationale
The acquisition positions Light & Wonder as a leader in the charitable gaming sector, complementing its cross-platform strategy. It allows L&W to leverage its land-based gaming content and expand a loyal customer base, supported by Grover Gaming’s strong relationships and dedicated local teams. The cultural alignment between both companies is expected to facilitate a smooth integration.
Financial Performance
In the year ended December 31, 2024, Grover Charitable Gaming generated $135 million in revenue and $111 million in adjusted EBITDA on a preliminary and unaudited basis. This financial performance underscores the acquisition’s appeal, providing a strong earnings profile for Light & Wonder.
Funding Structure
Light & Wonder will fund the acquisition using existing cash reserves and incremental debt financing, maintaining a net debt leverage ratio target between 2.5x and 3.5x on a combined basis.
Executive Comments
Matt Wilson, President and Chief Executive Officer of Light & Wonder, stated, “Grover Gaming is a leading player in charitable gaming, a category that has experienced significant growth in recent years. This transaction complements our position as the leading cross-platform global games company by adding another compelling regulated adjacency to our profile.”
Garrett Blackwelder, CEO and Founder of Grover Gaming, added, “I am very thankful for all of our Grover Gaming teammates and how hard they work every day. I’m also grateful for our customers’ loyalty over the past two decades. Light & Wonder is an ideal partner for us, given our similar company cultures and dedication to innovation and customer service. We are excited to see Charitable Gaming taken to a new level!”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder. The Motley Fool Australia has recommended Light & Wonder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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