Scientific Games (SGMS) Ticks Higher, Gets WMS (WMS) for Favorable Valuation
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Scientific Games (Nasdaq: SGMS) is moving higher early Thursday morning following a $26 per share takeover offer for larger rival WMS Industries (NYSE: WMS).
In the release, Scientific Games pegged the enterprise value of WMS at $1.5 billion, leading to an enterprise value-to-EBITDA multiple of 6.0 times. Though the price of $26 was 59 percent above the $16.37 WMS closed at on Wednesday, peers like Bally Technologies (NYSE: BYI) and International Game Tech (NYSE: IGT) are going for 8.24 times and 6.80 times, respectively.
WMS was trading for 4.65 times EV-to-EBITDA ahead of the announcement.
As a result, Scientific Games is up despite the price tag on WMS seeming rich.
In the release, Scientific Games pegged the enterprise value of WMS at $1.5 billion, leading to an enterprise value-to-EBITDA multiple of 6.0 times. Though the price of $26 was 59 percent above the $16.37 WMS closed at on Wednesday, peers like Bally Technologies (NYSE: BYI) and International Game Tech (NYSE: IGT) are going for 8.24 times and 6.80 times, respectively.
WMS was trading for 4.65 times EV-to-EBITDA ahead of the announcement.
As a result, Scientific Games is up despite the price tag on WMS seeming rich.
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