New US and UK tie-up
United States casino operator Bally’s Corporation has made a $2.74bn offer to acquire UK gambling company Gamesys. Both parties have already agreed on key terms of the possible merger.
12.7% premium when compared to Tuesday’s closing price
Bally’s plans to pay £18.50 ($25.36) per Gamesys share, a 12.7% premium when compared to Tuesday’s closing price. In a second possibility, Gamesys shareholders could accept .343 new Bally’s shares per Gamesys share to substitute all or part of the cash payment.
Offer details
The deal will benefit both the US and UK companies. Gamesys would gain access to the ever-growing land-based and online gambling operations of Bally’s in the United States. For Bally’s, the company will make use of the UK gaming company’s online gambling product expertise. Gamesys is the owner of Jackpotjoy and Virgin Casino brands in the UK.
Gamesys founders and executives are agreeable to the deal and would like to go with the share offer option.
With a finalized deal, the current chief executive of Gamesys, Lee Fenton, would hold the same position within the combined group. Two more directors of Gamesys would join the board. Bally’s chief executive George Papanier would remain on board and run Bally’s land-based casinos.
Bally’s chair Soo Kim stated that Gamesys’ proven technology platform and its experienced management team combined with Bally’s US market access would allow the combined group to “capitalize on the significant growth opportunities in the US sports betting and online markets.”
Another UK/US deal
Companies based in the United States and United Kingdom are teaming up to take advantage of the blossoming iGaming market in the United States. Along with the potential Bally’s/Gamesys deal, Caesars Entertainment is in the process of acquiring the remaining 80% of William Hill that it doesn’t already own.
A few days ago, the Nevada Gaming Commission approved the $3.7bn deal between the two companies. Caesars is now a step closer to completing the transaction by its target date of April 1. One final March 31 hearing in the Scheme Court is still on tap before the deal is done.
Caesars plans to sell the international assets of William Hill once the transaction is completed.