Since making an initial bid of +£2 billion, Bally’s Corporation has signed a ‘agreement in principle’ to purchase Gamesys Group Plc.
Gamesys shareholders have been given £18.50 in cash per share by the US gambling conglomerate, which is looking to rapidly broaden its digital portfolio.
Bally’s reported that its bid reflects an approximately 40 percentage premium on Gamesys’ share price of £13.30 on January 25th, when the conglomerate made its initial approach.
Bally’s is now proposing a Share Alternative to Gamesys shareholders as part of the proposal, enabling them to purchase New Bally’s Shares at a cost of 0.343 per Gamesys share.
The Gamesys board of directors has agreed to Bally’s proposal, stating that a “possible combination” has strategic and financial merit, resulting in long-term benefits for its owners.
‘A uniquely powerful company’
Gamesys CEO Lee Fenton’s statement read: “From our first meeting to now it has been the entrepreneurial energy of the two businesses that has brought us to the edge of creating a uniquely powerful company.”
The NYSE gambling group is said to be using strategic M&A to develop its US sports betting and iGaming platform, rather than going down the traditional path of collaborating with a European technology provider.
In 2019, JPG bought Gamesys for £490 million, taking on the branding of the purchased firm.
Fenton will become the chief executive of Bally’s emerging digital unit if the merger goes forward, and two more Gamesys executives will join the expanded group.
Soo Kim, Chairman of Bally’s said: “We believe that this combination would mark a transformational step in our journey to become a leading integrated, omni-channel gaming company with a B2B2C business.
“We think that Gamesys’ proven technology platform alongside its highly respected and experienced management team, combined with the US market access that Bally’s provides, should allow the combined group to capitalise on the significant growth opportunities in the US sports betting and online markets.”
Soo Kim continued: “We are truly excited about the opportunities that this combination would offer and the enhanced and comprehensive experience and product offering that it would enable us to offer our customers.”