What Happened:
Shares of digital casino game developer SciPlay (NASDAQ:SCPL) jumped 25.4% in the pre-market session after Light & Wonder proposed to buy out the remaining 17% stake in SciPlay that it does not already own for $20.00 per share in cash, valuing the deal at $422 million and the company at $2.1 billion. The offer implied a 28.5% premium over SciPlay's closing price on May 17, 2023. Light & Wonder added that "the deal would enable seamless collaboration with SciPlay and merge the balance sheets of both companies, giving more flexibility to invest cash where it can create the most value for shareholders."
What is the market telling us:
SciPlay's shares are not very volatile than the market average and over the last year have had only 6 moves greater than 5%. Moves this big are very rare for SciPlay and that is indicating to us that this news had a significant impact on the market's perception of the business.
SciPlay is up 24.2% since the beginning of the year. Investors who bought $1,000 worth of SciPlay's shares at the IPO in May 2019 would now be looking at an investment worth $1,290.
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