Light & Wonder Announces Acquisition Of Grover Gaming Reaching $1 Billion
Light & Wonder has announced its intention to acquire the charitable gaming assets of Grover Gaming Inc. and G2 Gaming Inc. The deal valued at up to $1 billion, marks a substantial expansion for Light & Wonder into the charitable gaming sector.
The acquisition agreement, which encompasses the assets known collectively as Grover Charitable Gaming, represents a new step for Light & Wonder as it seeks to diversify its portfolio and strengthen its position in the gaming sector.
The Acquisition Agreement: Breaking Down the Deal
- Upfront Payment: Light & Wonder has committed to an initial cash payment of $850 million upon the closure of the deal. This substantial sum underscores the company’s confidence in the value of Grover Gaming’s charitable assets.
- Performance-Based Earn-Out: An additional payment of up to $200 million has been incorporated into the agreement. This sum is contingent upon the achievement of specific financial milestones over a four-year period following the acquisition. The earn-out is revenue-based, incentivizing strong performance post-acquisition.
The upfront consideration of $850 million implies a valuation multiple of approximately 7.7 times Grover’s projected adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) for 2024.
Light & Wonder anticipates that the transaction will reach completion during the second quarter of 2025.
As part of the acquisition terms, Garrett Blackwelder, the current owner of Grover Gaming, has agreed to collaborate with Light & Wonder for a period of three years following the closure of the deal. This arrangement aims to ensure a smooth transition and continued success of the business under new ownership.
