Scientific Games’ buys IGT online
By paul
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.

 
 
 
 
 
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