|New York-based Scientific Games Corp, a supplier of services, systems and products to the instant-ticket lottery industry and the pari-mutuel wagering industry, has bought IGT OnLine Entertainment Systems Inc. from International Game Technology for $143 million in cash. Shares in Scientific Games soared Friday on the news, as the online lottery assets will immediately bolster Scientific’s earnings and effectively double its online operations presence. |
'A lot of expenses will go away” because of the acquisition, said Jefferies & Co. analyst Lawrence Klatzkin.
Seven US states use Scientific Games' online lottery system and the deal will add seven more states, Klatzkin said.
At about 1:40 p.m. EDT, shares of Scientific Games were up $1.44, or 15%, to $ 11.33 on the Nasdaq Stock Market. Earlier, the company hit a 52-week high of $ 11.40.
However, this was bad news for lottery tech rival Gtech, whose shares traded lower following the news. The company's stock was down $ 1.88, or 4.4%, at $41.32.