Light & Wonder (LNW, Financials) agreed to acquire the charitable gaming assets of Grover Gaming for $850 million in cash, with an additional potential earn-out of up to $200 million over four years.
The purchase increases the profile of Light & Wonder in the field of charity gaming.
Operating on a consistent revenue model, Grover Gaming, a supplier of electronic pull-tabs, has more than 10,000 leased machines spread across five U.S. states. Grover Gaming is valued under the agreement at around 7.7 times its expected 2024 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Subject to regulatory clearances, Light & Wonder anticipates the purchase to completion in the second quarter of 2025.
Founded in 2013 and with its headquarters in Greenville, North Carolina, Grover Gaming runs with a committed service staff and has long-standing ties to philanthropic groups. Grover Gaming said unaudited income of $135 million and adjusted EBITDA of $111 million for the year ended December 31, 2024.
Light & Wonder will pay for the transaction using both extra loan finance and current cash. After the purchase, the firm expects its net debt leverage ratio to be within its target range of 2.5 to 3.5 times adjusted EBITDA.
Shares of Light & Wonder rose 4.7% to $101.61 on Tuesday following the announcement.
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