Leading slot machine developer WMS Industries has been purchased by Scientific Games Corporation for a staggering $1.5 billion.

WMS Industries, which has developed popular online slots based on popular cultural phenomenon’s like The Lord of the Rings, Kiss and The Price is Right, has gone from strength to strength in recent years with shareholders now rewarded with a 59 percent premium on every share.

Scientific Games CEO Lorne Weil was delighted to announce the deal and said it represents a turning point for his company.

“The acquisition of WMS is transformational for Scientific Games, enabling us to offer a complete portfolio of lottery and gaming products and services to both new and existing customers around the world,” Weil said.

”We expect to combine our game content, technology, operational capabilities and respective geographic footprints to create an enterprise poised to capitalize on significant growth opportunities around the globe.”

Brian Gamache, CEO of WMS Industries, was also pleased to announce the deal and appeared confident that it was the correct decision for his company.

“The combination of Scientific Games and WMS yields tremendous benefits to our customers, shareholders and employees,” Gamache said

“We view this transaction as the next logical and strategic step in offering continued innovation in gaming.”

“Shareholders will enjoy a meaningful premium for their shares and employees will have expanded career opportunities as part of a larger, broader and more diverse organization.”

Leading Gaming Analyst Carlo Santarelli said the deal was an excellent one for WMS Industries but less so for Scientific Games.

“While the deal makes considerable sense for WMS given current industry headwinds and company specific struggles, we find the rich premium and pro forma outlook to be somewhat daunting for Scientific Games,” Santarelli said.

The sale is expected to be completed by the end of the year.

Source: Las Vegas Review-Journal