Scientific Games Corporation Acquires WMS Industries in $1.4bn Deal

WMS Industries has been supplying video betting slot and poker machines to casinos since the brick and mortar world emigrated to cyber space in the1990s. The W & M stands for Williams Manufacturing and is named after the companies founder Harry Williams. The company started out in life as a manufacturer of pinball machines, but now provides punters with a way of earning a buck or two instead.
 

The casino gaming business is cut throat. Competition is fierce and one of WMS Industries has decided to eat up the competition by the form of acquisitions, after Scientific Games Corporation agreed a deal to purchase WMS Industries for a reported $1.4 billion.
 

Scientific released a statement saying the deal will immediately strengthen their earnings per share and supply free cash flow. The New York based company has provided solutions to gaming and lottery companies since it was founded in 1984. At the turn of the century Autotote Corp. purchased Scientific Games Holding Corp. for $308 million and changed the name to the current title the following year.
 

Scientific Games Corporation has a three-year deal with social gaming behemoth Zynga, whilst WMS has a partnership with 888.com to offer US land-based customers an online poker solution. Once the online gambling laws are changed in the United States, it appears that Scientific Games Corporation will be one of the big players in the soon to be revived U.S online poker industry.
 

WMS has already been awarded its operators licence for the state of Nevada and Scientific Games has one pending.