Light & Wonder has announced that it has entered into a definitive agreement to acquire the charitable gaming assets of Grover Gaming and G2 Gaming. The company has said it is prepared to pay $850m in an all-cash deal but also contribute an earn-out based on four-year revenue to the tune of an additional $200m.

Light & Wonder pushes into a new big-growth sector

This pushes the acquisition price to well over $1bn and signals Light & Wonder’s confidence in the sector, and specifically in Grover Charitable Gaming’s base of operation which already spans five states in the United States including North Dakota, Ohio, Virginia, Kentucky, and New Hampshire.

Each of these states has seen Grove Charitable Gaming establish a long-standing local presence and relationships with charitable customers. The company has been able to deploy and rally robust teams of local service technicians and relationship managers, guaranteeing the smooth operation of its activities in each of the five states.

The company has more than 10,000 electronic pull-tab units across its five bases of operations and has been exponentially gathering momentum since the business launched back in 2013 out of Greenville, North Carolina.

Commenting on this deal, Grover Gaming CEO and Founder, Garrett Blackwelder had this to say:

"I am very thankful for all of our Grover Gaming teammates and how hard they work every day. I'm also grateful for our customers' loyalty over the past two decades. We realize without them, we wouldn't be where we are today. Light & Wonder is an ideal partner for us, given our similar company cultures and dedication to innovation and customer service."

Light & Wonder is further assured by the business’s steadfast performance, with the company generating a revenue of $135m and Grover Adjusted EBITDA of $111m, an official press release outlined. As to the reason Light & Wonder is pushing into this sector, the company believes there is a lot to actually gain.

Once the acquisition is complete, both employees from Grover Gaming and Light & Wonder will help run the business.

Light & Wonder believes that the acquisition directly impacts the overall value of the company and helps boost gains for shareholders. Light & Wonder has noted that it is looking to expand into a high-growth, regulated adjacency, in which the company was not represented.

Light & Wonder is looking to create strong shareholder value, business opportunities

Grover Charitable Gaming already has a loyal customer base that is supported by "strong customer relationships," as further outlined by Light & Wonder.

The process of transition and integration is not likely to stir any trouble, Light & Wonder similarly noted, with the acquired business posting an "attractive financial profile" which will only help contribute to the company’s value and earnings.

Light & Wonder CEO and President Matt Wilson was similarly excited about his company dipping a toe in the coveted vertical, arguing that it had undergone some significant growth in recent years.

"This transaction complements our position as the leading cross-platform global games company by adding another compelling regulated adjacency to our profile," Wilson explained, with exciting incremental revenue opportunities now on the horizon.

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