Scientific Games announced this week to buy the firm Nyx Gaming, specialist in casino games and online sports betting. With this acquisition, Scientific Games continues to seek growth over the long term and strengthens its position on certain key verticals.
Strengthen on online casino games and sports betting
Scientific Games (SG) was determined to buy back Nyx Gaming in light of the quality of the latter. SG offered a price of $632 million, corresponding to just under $2 a share. This doubles the current value of Nyx mid-September (about $1 a share).
With this purchase, Scientific Games is sure to get stronger in the field of online casinos. There are hundreds of slot machines under the Nyx brand. OpenBet, which is owned by Nyx Gaming since May 2016, is also a major factor in explaining this acquisition. Indeed, Nyx has cleverly invested its money by paying 270£ million for OpenBet because the sports betting specialist has allowed him to reach a much wider audience. With this new asset, Nyx was able to set a record of 68,000 bets per minute at the last Grand National, a famous British betting competition.
This kind of performance certainly attracted SG’s lust.
“This transaction will allow the company to take advantage of the growth of online gambling and sports betting on the internet. Nyx platforms will be adapted to the quality content of Scientific Games. “Said Kevin Sheehan, CEO of SG.
Scientific Games is a heavyweight casino industry but desires to have a larger footprint on online gaming. The acquisition of Nyx should perfectly allow this project since Nyx has many other developers. The firm has indeed bought several of its competitors over the years and has passed many agreements with them. When a casino trusts Nyx, it knows that it has access to an impressive library of games (including NextGen Gaming). Now, Scientific Games will benefit from this selection of games.
After the announcement of the redemption, the share of Scientific Games decreased by 1%.