Light & Wonder Acquires Grover Gaming’s Charitable Assets

Light & Wonder has announced its entry into a definitive agreement to acquire the charitable gaming assets of Grover Gaming and G2 Gaming. The company plans to pay $850 million in an all-cash transaction, potentially adding an additional $200 million based on a four-year revenue earn-out.

Light & Wonder Ventures into a Promising Growth Sector

This acquisition elevates the total investment to over $1 billion, reflecting Light & Wonder’s confidence in this sector. They are particularly optimistic about Grover Charitable Gaming’s operations, which are already well-established in five U.S. states:

North Dakota
Ohio
Virginia
Kentucky
New Hampshire

In each of these states, Grover Charitable Gaming has developed a strong local presence and nurtured relationships with charitable clients. The company has built dedicated teams of local service technicians and relationship managers, ensuring seamless operations across these regions.

With over 10,000 electronic pull-tab units deployed across its bases, Grover Charitable Gaming has gained significant momentum since its inception in 2013 in Greenville, North Carolina.

Reflecting on this strategic move, Grover Gaming CEO and Founder, Garrett Blackwelder, expressed:

‘I am very thankful for all of our Grover Gaming teammates and how hard they work every day. I’m also grateful for our customers’ loyalty over the past two decades. We realize without them, we wouldn’t be where we are today. Light & Wonder is an ideal partner for us, given our similar company cultures and dedication to innovation and customer service.’

Light & Wonder is buoyed by Grover Gaming’s robust performance, having generated $135 million in revenue and an adjusted EBITDA of $111 million, as outlined in a recent official press release. The company’s foray into this sector is driven by the substantial opportunities it presents.

Upon completion of the acquisition, employees from both Grover Gaming and Light & Wonder will collaborate to manage the business.

Light & Wonder believes this acquisition will enhance the company’s overall value and benefit shareholders. The company is eager to expand into a high-growth, regulated sector where it hasn’t been represented previously.

Creating Strong Shareholder Value and Business Opportunities

Grover Charitable Gaming boasts a dedicated customer base, supported by strong customer relationships, as emphasized by Light & Wonder.

The transition and integration process is expected to proceed smoothly, with the acquired business showcasing an attractive financial profile that will contribute positively to the company’s value and earnings.

Light & Wonder CEO and President Matt Wilson shared his enthusiasm about the company’s venture into this lucrative vertical, noting significant growth in recent years. ‘This transaction complements our position as the leading cross-platform global games company by adding another compelling regulated adjacency to our profile,’ Wilson explained, with exciting incremental revenue opportunities now on the horizon.