Light & Wonder Acquires Grover Gaming Assets

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Light & Wonder, Inc. announced that it has entered into a definitive agreement to acquire the charitable gaming assets of Grover Gaming, Inc. and G2 Gaming, Inc. for total consideration of $850 million cash, subject to customary purchase price adjustments, and a four-year revenue-based earn-out of up to $200 million cash.

Privately owned by Garrett Blackwelder, Grover Charitable Gaming has an installed base of over 10,000 leased electronic pull-tab units across five U.S. states (ND, OH, VA, KY, NH), operating under a recurring revenue model. The business was founded in 2013 and is headquartered in Greenville, North Carolina.

Under the terms of the agreement, Garrett will collaborate with Light & Wonder to help drive the continued success of the business over the next three years.

Grover Charitable Gaming has developed longstanding and persistent relationships with charitable customers in the states where it operates, underpinned by a dedicated local team of service technicians and relationship managers.

For the year ended 2024, on an unaudited and preliminary basis, Grover Charitable Gaming generated revenue of $135 million and EBITDA of $111 million.

The company expects the transaction to close during the second quarter of 2025, subject to required regulatory and other approvals and customary closing conditions.

The acquisition of Grover Charitable Gaming provides several strategic and financial benefits for L&W shareholders:

  • A leading position in the fast-growing charitable gaming space and a best-in-class supplier in every state it operates across.
  • Transaction complements L&W’s cross-platform strategy, by expanding into another high-growth, regulated adjacency in which L&W is not currently a participant.
  • Loyal customer base is supported by strong customer relationships tied to in-market local teams.
  • Strong cultural alignment which will facilitate a smooth transition and integration.
  • Attractive financial profile which is expected to be highly accretive to value and earnings with high-single-digit adjusted NPATA per-share accretion in the first full calendar year post acquisition.

Post acquisition, Light & Wonder will operate the business with a combination of Grover Gaming and Light & Wonder employees. Light & Wonder expects to fund the acquisition with existing cash and incremental debt financing.