American land-based casino operator Bally’s Corporation has reportedly announced the definitive terms for its around $2.2 billion agreement to purchase British iGaming software developer Gamesys Group.
The Rhode Island-based firm used an official press release to detail that the proposed arrangement would involve it paying $1.85 for every one of the London-headquartered firm’s outstanding shares, which would represent a 12.6% premium when compared with their closing price on March 23. As outlined in the initial terms of the deal worked out at the same time, the company explained that shareholders in Gamesys Group are to also be given the option of swapping every one of their individual stakes for 0.343 in Bally’s Corporation.
Previously known as Twin River Worldwide Holdings Incorporated until undergoing a name-change late last year, Bally’s Corporation is responsible for eleven land-based American casinos including the giant Bally’s Atlantic City and Eldorado Resort Casino Shreveport properties. The New York-listed enterprise has moreover been on something of a buying spree of late after inking agreements to acquire daily fantasy sports firm Monkey Knife Fight, online free-play games developer SportCaller and digital technology and services enterprise Bet.Works Corporation while failing in a $90 million bid for the World Poker Tour (WPT) poker brand.
Bally’s Corporation declared that its acquisition of Gamesys Group would create ‘one of the broadest portfolios in the market of omni-channel cross-sell opportunities’ with a significant presence in the land-based gaming, online casino and sportsbetting, poker, bingo, daily fantasy sports and free-play verticals. The operator furthermore disclosed that the Finance Director for its latest target, Michael Mee, has already agreed to exchange his 25.6% stake for a combination of cash and shares to leave it on the hook for a potential remaining closing bill of almost $1.62 billion.
For its part and London-listed Gamesys Group develops online casino games while additionally running a number of United Kingdom-licensed iGaming domains such as VeraJohn.com, InterCasino.co.uk and RainbowRichesCasino.com. The firm similarly has a presence in the United States via the New Jersey-facing sites at VirginCasino.com and TropicanaCasino.com and has of late been benefitting as casino and sportsbetting punters move online in reaction to the coronavirus pandemic.
Should the proposed takeover go through and Bally’s Corporation divulged that the Chief Executive Officer for Gamesys Group, Lee Fenton, would be appointed to lead the newly-enlarged company. It stated that its own boss, George Papanier, would subsequently remain as a director with responsibility over its retail casino operations but be joined on a new-look board featuring its target’s Chief Operating Officer, Robeson Reeves, and non-executive director Jim Ryan.
Read a statement from Bally’s Corporation…
“We believe that this combination will mark a transformational step in our journey to become a leading integrated and omni-channel gaming company with a business-to-business-to-consumer business. 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.”