We have a winner if you bet that the $1.5 billion acquisition of slot machine manufacturer WMS Industries by Scientific Games Corporation would increase New York-based Scientific's street cred on Wall Street, please step forward: ding ding ding! The buyout is expected to bring both WMS and Scientific Games in the neighborhood of $100 million in complementary cost-savings between the 2 merged companies, and that is making investors' ears perk up.
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Scientific is on the lookout for the slot machine maker for awhile now; the organization provides lottery systems and the equipment to operate the same to numerous American states, Canadian provinces and also some countries that are foreign. Don't count on Nevada being certainly one of those though; not gonna happen.
For WMS stockholders, life is great; Scientific Games shelled out $26 per WMS share, that has been approximately 59 percent over what the slot manufacturer shut at back on Jan. 31 of in 2010.
'We continue to develop more confident with the pending WMS acquisition from both significant and much more importantly business stability perspective,' said Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski about the merger at a current investor meeting.
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And though Nevada may never be getting a state lottery anytime quickly, Scientific can still make good use of WMS' social- and in