(Add details on agreement, Brookfield statement, background)

Oct. 27 (Reuters) – Scientific Games Corp, a U.S. slot machine maker, on Wednesday announced that Canadian investment firm Brookfield Business Partners will buy out its lottery business for $ 6.05 billion.

The deal will consist of $ 5.825 billion in cash and an additional payment of up to $ 225 million depending on the achievement of certain profitability targets in 2022 and 2023. It is expected to be concluded in the second quarter of next year, a declared Scientific Games.

As demand for online games increased during the pandemic, Las Vegas-based Scientific Games previously announced a plan to divest its lottery and sports betting business to focus on the games and digital content provider.

According to its website, it operates lottery games in over 50 countries. The lottery business has also sparked interest from private equity firm Apollo Global Management Inc, according to a Bloomberg report.

Brookfield said the deal for the lottery business will be funded with around $ 2.6 billion in equity, 30% of which will be raised through existing funds and the remainder from its institutional partners.

Last month, Reuters reported that Scientific Games was also looking to list its predominantly North American and European lottery unit in Australia in a $ 5 billion IPO.

The company also sold its sports betting business OpenBet to Endeavor Group Holdings Inc, the owner of the Ultimate Fighting Championship, in September for $ 1.2 billion in cash and shares. (Reporting by Maria Ponnerhath and Tiyashi Datta in Bangalore; Editing by Arun Koyyur)

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