NEW YORK (AP) — Instant-win lottery ticket company Scientific Games is buying gaming equipment company WMS Industries Inc. for about $1.42 billion in order to broaden its product offerings.
Scientific Games Corp., which also makes video slot machines and other gaming systems, says it will pay $26 per WMS share. That's a 59 percent premium to the company's Wednesday closing price of $16.37.
Its stock jumped more than 57 percent in premarket trading.
WMS currently has about 54.6 million outstanding shares, according to FactSet.
The companies put the deal's total value at approximately $1.5 billion, including $85 million in debt.
Scientific Games said the buyout is not subject to a financing condition and that it has committed financing.
Both companies' boards unanimously approved the deal. The acquisition is expected to close by year's end.