Scientific Games’ $6.05 Billion Sale of its Lottery Business to Brookfield Business Partners

On October 27, 2021, Scientific Games Corporation (“Scientific Games”) announced that it has entered into a definitive agreement to sell its Lottery business, a leading, diversified global lottery partner with long‑standing relationships with approximately 130 government and non‑government lottery entities in over 50 countries, to Brookfield Business Partners L.P. together with its institutional partners (collectively, “Brookfield”) for total consideration of $6.05 billion consisting of $5.825 billion in cash and an earn‑out of up to $225 million based on the achievement of certain EBIDTA targets in 2022 and 2023. Cravath is representing Scientific Games in connection with the transaction.

The Cravath team is led by partner Robert I. Townsend III and includes associates Kelly M. Smercina, D. Ana Choi, Fay E. Krewer and Paul A. Bryant on M&A matters; partner Michael S. Goldman on financing matters; partners Craig F. Arcella, Nicholas A. Dorsey and Sasha Rosenthal‑Larrea and associates Lee M. Blum, Fay E. Krewer, Rachael E. Joseph and Callum A.F. Sproule on capital markets matters; partner J. Leonard Teti II and associates Andrew T. Davis, Cecily Xi, Duncan H. Hardell and Joana W. Li on tax matters; partner Yonatan Even, senior attorney Jesse M. Weiss and practice area attorney Nicole M. Peles on regulatory matters; partner Matthew J. Bobby, practice area attorney Sarah W. Colangelo and associates David Crampton and Laura S. Lee on executive compensation and benefits matters; partner David J. Kappos, practice area attorney Anthony N. Magistrale and associate Carys J. Webb on intellectual property matters; partner Matthew Morreale on environmental matters; practice area attorney Brian M. Budnick on real estate matters; and associates William D. Podurgiel and Jonathan S. Madorsky on corporate governance and disclosure matters. William Council also worked on M&A matters, Mariel V. Mok also worked on capital markets matters and Michael C. Grant also worked on regulatory matters.