- SciPlay looks set to be acquired by parent company Scientific Games in an all-stock deal only two years after its IPO.
- The implied valuation seems underwhelming relative to peers and comparable transactions.
- However, considering its voting power and the fact that the deal makes good strategic sense for Scientific Games, I see the deal going through.
- With markets pricing in a slight premium to the 0.25 exchange ratio, there is an opportunity to capture the spread into the year-end close.
For further details see:
SciPlay: The Story Ends Just As It Was Getting Started