Light & Wonder announced that it has penned a deal to acquire Grover Gaming’s charitable gaming business, Grover Charitable Gaming, in a $850 million deal. According to the former company, this M&A agreement would fulfill several key objectives, including providing the group with a strong presence within the fast-growing charitable gaming sector.
Grover Charitable Gaming to Become Part of L&W
Light & Wonder confirmed that it has entered into a definitive agreement to acquire said assets for a total consideration of $850 million in cash. The deal is still subject to customary purchase price adjustments and a four-year revenue-based earn-out of up to $200 million in cash.
Light & Wonder clarified that Grover Charitable Gaming, currently owned by Garrett Blackwelder, boasts some 10,000 leased electronic pull-tab units across the states of North Dakota, Ohio, Virginia, Kentucky, and New Hampshire.
The buyer said that the newly-acquired business will be initially operated by a combination of existing Grover gaming workers and Light & Wonder employees. As part of the broader Light & Wonder family, Blackwelder will work with the charitable gaming company to drive continued success for the business for the next three years.
Grover Charitable Gaming is headquartered in North Carolina and has functioned since 2013. Since then, it has developed strong relationships with charitable customers in its five states. In 2024 alone, it generated revenue of $135 million and adjusted EBITDA of $111 million.
The Deal Will Enhance L&W’s Business
Light & Wonder said that the acquisition is expected to benefit its broader business and stakeholders. Among other things, it will provide it with a leading position in charitable gaming, complementing the group’s cross-platform strategy.
Light & Wonder said that Grover Charitable Gaming has a strong base of loyal customers and a reliable customer relations team in all markets where it operates. The latter company boasts an attractive financial profile, leading the former to expect a positive effect on the broader business following the acquisition.
The buyer highlighted a strong cultural alignment which will facilitate a smooth transition and integration. Light & Wonder said that it expects the transaction to go through in Q2 2025, subject to certain regulatory approvals and customary closing conditions.
Light & Wonder clarified that the deal will be funded with existing cash and incremental debt financing. The company reaffirmed its 2025 consolidated adjusted EBITDA target of $1.4 billion.
The Two Companies Will Take Charitable Gaming to a New Level
Light & Wonder’s chief executive officer and president, Matt Wilson, commented on the matter, lauding Grover Gaming as a leading player in charitable gaming. Wilson highlighted the rapid growth of the sector, saying that the transaction would complement his company’s business strategy.
Importantly, there are exciting incremental revenue opportunities to be realized by leveraging Light & Wonder’s proven land-based gaming content to a new and loyal customer base. We look forward to continuing to partner with Grover Gaming’s customers, building on its strong dedication to customer service.
Matt Wilson, president & CEO, Light & Wonder
Garrett Blackwelder, founder and CEO of Grover Gaming, was pleased with the transaction. He thanked the highly committed Grover Gaming team and the loyal customers for making the deal possible and said that he is looking forward to opening a new chapter for the business.
Light & Wonder is an ideal partner for us, given our similar company cultures and dedication to innovation and customer service. We are excited to see Charitable Gaming taken to a new level!
Garrett Blackwelder, founder & CEO, Grover Gaming
In other news, Light & Wonder recently named Nathan Drane as chief product officer. His appointment came several weeks after the company selected Simon Johnson as CEO of its iGaming division.
