Shares of WMS Industries Inc. (NYSE: WMS), a designer, manufacturer and distributor of games, video and mechanical reel-spinning gaming machines and video lottery terminals (VLTs) to authorized customers in legal gaming venue worldwide, are seeing a huge rally in trading today after the company agreed to be acquired by Scientific Group Inc. (NASDAQ: SGMS).
WMS Industries and Scientific Group signed a definitive agreement under which SGMS will acquire WMS for $26 per share or approximately $1.5 billion. The offer price represents a significant premium to WMS shareholders. The transaction has already been approved by the Board of Directors of both companies.
The transaction brings together two leading companies in the gaming industry to create an organization that will supply a wide range of products and services to public and private sector lottery and gaming customers globally.
Brian R. Gamache, Chairman and CEO of WMS Industries, said that the combination of Scientific Games and WMS Industries yields tremendous benefits to the company’s customers, shareholders and employees. Gamache further said that WMS views the transaction as the next logical and strategic step in offering continued innovation in gaming.
Scientific Games Chairman and CEO A. Lorne Weil, meanwhile, said that the acquisition of WMS is transformational for SMGS, enabling the company to offer a complete portfolio of lottery and gaming products and services to both new and existing customers around the world.
WMS shares rose to a 52-week high of $25.34 following the acquisition news. At last check, the stock was trading 50.95% higher at $24.71 on above average volume of 14.42 million.
SGMS shares have also risen sharply in trading today. The stock hit an intra-day high of $10.88 earlier today, and at last check, it was trading 15.79% higher at $10.34 on above average volume of 1.54 million.