Light & Wonder has officially completed the sale of its Scientific Games Lottery business to Canadian investment firm Brookfield Business Partners.

The sale, which had been previously announced in October 2021, has now been finalized for US$5.8 billion in gross cash proceeds and approximately $5 billion of net after-tax cash proceeds. Light & Wonder called the deal “a major milestone”.

Light & Wonder says its priorities are now “debt reduction to a target net debt leverage ratio range of 2.5x to 3.5x”, repurchasing shares in order to return substantial capital to shareholders, and exploring “disciplined investment in key growth opportunities”, where the firm will prioritize its capital for buy-backs, debt reduction and organic investments.

Barry Cottle, Chief Executive Officer of Light & Wonder, said the transaction is “a significant step” towards streamlining Light & Wonder’s portfolio and balance sheet.

“The convergence of land-based and digital continues to gain momentum and we are strongly positioned to be a leader in the industry,” Cottle said. “With the completion of the lottery business sale and the upcoming sale of our sports betting business, we are moving rapidly as we execute on our vision to be a leading cross-platform global game provider and unlock the full potential of Light & Wonder. This also positions the lottery business for success as a stand-alone company completely focused on innovating for its global lottery customers.”

Last month, Light & Wonder announced a rebrand of its Scientific Games name. However, the lottery business will maintain that name as it acts as a standalone company with a singular focus on its lottery customers.