Light & Wonder shares climb on Grover Gaming acquisition
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More news: Light & Wonder shares surged around 9% in early trade after the gambling group agreed to buy the charitable gaming assets of US games developer Grover Gaming.
Light & Wonder shares were up 8.9% to $167.36 at 10:50am AEDT, extending gains of over 20% since the turn of the year.
Light & Wonder to buy Grover Gaming assets for up to $1.65b
The news: Dual-listed gambling group Light & Wonder has agreed to buy the charitable gaming assets of Grover Gaming, a US games developer, for USD850 million ($1.34 billion) in cash, with an additional potential earn-out of up to USD200 million over four years.
The numbers: Privately owned by Grover Gaming CEO and founder Garrett Blackwelder, Grover Charitable Gaming has an installed base of over 10,000 leased electronic pull-tab units across five US states. The business was founded in 2013 and is headquartered in Greenville, North Carolina.
For the year ended 31 December 2024, on an unaudited and preliminary basis, Grover Charitable Gaming generated revenue of $135 million and adjusted EBITDA of $111 million.
The context: Under the terms of the agreement, Blackwelder will collaborate with Light & Wonder over the next three years.
The company expects the deal to close during the second quarter of 2025, subject to regulatory and other approvals. Light & Wonder expects to fund the acquisition with existing cash and incremental debt financing.
Post acquisition, Light & Wonder will operate the business with a combination of Grover Gaming and Light & Wonder employees.
What they said: "Grover Gaming is a leading player in charitable gaming, a category that has experienced significant growth in recent years," said Light & Wonder president and CEO Matt Wilson.
"This transaction complements our position as the leading cross-platform global games company by adding another compelling regulated adjacency to our profile.
"Importantly, there are exciting incremental revenue opportunities to be realized by leveraging Light & Wonder’s proven land-based gaming content to a new and loyal customer base."
The source: Light & Wonder media release
