Light & Wonder, Inc. announced on February 18, 2025, that it has entered into a definitive agreement to acquire the charitable gaming assets of Grover Gaming, Inc. and G2 Gaming, Inc. for a total consideration of $850 million in cash, subject to customary purchase price adjustments. The agreement also includes a four-year revenue-based earn-out of up to $200 million in cash. The upfront consideration implies a multiple of approximately 7.7x based on Grover's 2024 Adjusted EBITDA of $111 million.
Grover Charitable Gaming operates an installed base of over 10,000 leased electronic pull-tab units across five U.S. states, generating $135 million in revenue for the year ended December 31, 2024. This acquisition provides Light & Wonder with an attractive recurring revenue model and expands its presence in regulated land-based markets. The transaction is expected to close during the second quarter of 2025, pending required regulatory and other approvals.
Light & Wonder reaffirmed its 2025 $1.4 billion Consolidated AEBITDA Target, explicitly stating that this outlook does not include any AEBITDA contribution from the Grover Charitable Gaming acquisition. This strategic move complements Light & Wonder's position as a leading cross-platform global games company by adding another compelling regulated adjacency to its profile, with opportunities to leverage its proven land-based gaming content.
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