Scientific Games to buy NYX Gaming in C$775 million deal

Bally slot machines owner Scientific Games Corp (SGMS.O) said it would buy Canada’s NYX Gaming Group Ltd (NYX.V) for about C$775 million ($632 million), including debt, expanding its existing digital gaming and online gambling portfolio.

Shares of NYX jumped 106 percent to C$2.33 on the Toronto Venture Exchange in early trading on Wednesday. Shares of Scientific Games were little changed at $43.15 on the Nasdaq.

Scientific Games will acquire all of the outstandingordinary shares of NYX for C$2.40 per share.

The deal comes two months after Scientific Games said it would buy UK-based Red7Mobile, a maker of mobile and desktop casino games for an undisclosed amount.

The deal on Wednesday, which will be funded through cash and debt, is expected to close in the first quarter of 2018, the companies said in a joint statement.

Scientific Games said the deal will add to earnings in the first year after closing.

Scientific Games had Deutsche Bank Securities as its financial adviser and Cravath, Swaine & Moore LLP, McMillan LLP and Appleby (Guernsey) LLP as legal advisers.

NYX had Lazard and Macquarie Capital as financial advisers and Latham & Watkins LLP, Carey Olsen LLP and Stikeman Elliott LLP as legal advisers.