Scientific Games Corp. said Tuesday that it will retain many of the top executives of slot machine manufacturer WMS Industries after completion of the $1.5 billion buyout.
In a statement, the New York-based lottery systems provider said it would create two industry groups, gaming and lottery, with much of WMS falling into the gaming division.
Current WMS President Ken Lochiatto will head the seven-person management team for the gaming division along with Scott Schweinfurth, the current chief financial officer of Scientific Games.
WMS Chairman and CEO Brian Gamache will continue with Scientific Games as a consultant to company CEO A. Lorne Weil.
At last week’s Gaming Control Board meeting in Las Vegas, Weil said longtime WMS executive Orrin Edidin will become the senior vice president for strategy and business development of gaming.
Weil said Tuesday that the new leadership team is highly experienced.
“We are uniting two highly complementary businesses and creating a collaborative team focused on delivering new solutions, truly innovative content, world-class technology and industry-leading services to customers around the globe,” Weil said.
State gaming regulators gave tentative approval to the buyout, in which the lottery company is acquiring the industry’s third-largest slot machine manufacturer for $26 per share. The Nevada Gaming Commission is expected to look at the transaction next week.
Weil said the merger would result in $100 million in cost savings between the two companies.
Scientific Games intends to maintain WMS’ 145-person sales and service headquarters in Las Vegas.
The new Scientific gaming group is expected to be composed of the core WMS Gaming business; Scientific Games’ server-based gaming business headquartered in the United Kingdom; the gaming-related systems businesses of both Scientific Games and WMS; and Williams Interactive, WMS’ online gaming arm.
Scientific Games is 38 percent owned by New York investor Ron Perelman, who is ranked 27th on the Forbes 400 with a net worth of $14 billion.
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