Scientific-NYX Deal not Science but EvolutionPublished September 26, 2017 by Lee R
The new deal accelerates growth and diversifies the offerings of both iGaming heavyweight companies.
An interesting industry development has emerged this week, with significant ramifications for the way operators and service providers expand in the iGaming industry moving forward.
In a deal worth over a half million dollars, Scientific Games has entered into a definitive agreement to acquire NYX Gaming Group.
The New Powerhouse
The final price tag is tentatively set for CAD$775 (€528.3m/US$630m), with Scientific Games saying the deal would lead to the generation of what it called a “global digital gaming and lottery powerhouse” which would further strengthen Scientific’s “leadership position” in the market.
What that position is is where the intrigue for iGaming truly lies. In application, the deal means an expansion of general portfolio of services for Scientific Games. The new additions that the deal provides are a sports betting platform. The deal is also meant to accelerate the growth of interactive business to support and enhance the overall NYX operation.
Scientific’s New Capabilities
The notion of the new powerhouse ultimately emanates from as Scientific president and chief executive Kevin Sheehan explains the establishment of Scientific’s industry leadership through new capabilities of offering “one of the broadest end-to-end portfolios of engaging content, innovative technologies and digital products and services across gaming and lottery.”
Thus, Scientific becomes a leading player in what amounts to the iGaming superstore game, joining a handful of new supergroups who have merged technology and service support with front end gaming provision and operation specialisation.
NYX Increases Reach
To this end, current NYX chief executive Matt Davey specifies that his organization intends to come out with a newly created Digital Gaming and Sports arm at Scientific Games to oversee.
Passing the Benefits
Davey further commented on shareholder benefits of the deal, stating that the pending deal will “provide immediate and compelling cash value” while expanding “the products and solutions we are collectively able to offer our customers.”
NYX Finds a Way Up
So, NYX stands to get a bump in the Scientific organization while increasing its share value at the same time, in a move which will accelerate growth together for both parties involved.
Look for more mergers between back end technology suppliers and front end gaming operators in the next wave of evolution of iGaming industry development and competition.