The consideration consists of $5.8 billion in cash and an earnout clause of up to $225 million. The deal is scheduled to close in the second quarter of next year.
“We conducted a thorough review of paths to divest the Lottery business and this transaction maximizes value and the timing and certainty of proceeds while minimizing complexity and execution risks,” CEO Barry Cottle and Connie James, chief financial officer, said in a joint statement.
“The significant near-term proceeds from this transaction, as well as our previously announced sale of Sports Betting, enables us to aggressively de-lever, transform our balance sheet and position us with the financial flexibility to invest organically and inorganically in our largest growth opportunities.”
The supplier announced in June that it had carried out a strategic review and planned to divest its sports betting and lottery units to focus on its digital businesses, which it forecast would be the same scale as its land-based business in three years.
One option that had been discussed was a potential initial public offering in Australia.