A new avenue for growth
Super Group, the parent company of online sports betting operator Betway, has announced it will go public via a merger with special acquisitions company Sports Entertainment Acquisition Corp (SEAC).
The company announced details of the merger via a press release on Sunday morning. The combined business, operating under the name Super Group, will list its shares on the New York Stock Exchange under the ticker symbol SGHC.
the perfect partners with expertise across sports, entertainment and public markets”
Commenting on the agreement, Neal Menashe, CEO of Super Group, said the public listing will help the company expand in the US. He described SEAC chairman Eric Grubman and CEO John Collins as “the perfect partners with expertise across sports, entertainment and public markets.”
As reported by Reuters, sources close to the matter have suggested the newly combined company will hold a valuation of $5.1bn. Super Group expects the deal to close in the second half of 2021
Further details of the merger
In Sunday’s press release, Super Group announced that shareholders accounting for more than 70% of the company’s equity will maintain their stakes under the agreement. Its shareholders will retain approximately 88% of the combined company, which will have an estimated $200m on its balance sheet upon closing.
According to a report from Reuters, Grubman will become chairman of the combined business, while Collins will join the company’s board. The board of directors for both companies has unanimously approved the transaction, but it still requires the approval of SEAH shareholders.
In a statement released as part of the deal announcement, Grubman expressed excitement over Super Group’s potential. He described the company as a “diverse and multi-talented global team” with an ability to “successfully launch and achieve profitable growth in new markets.”
Plans for US expansion
Although the Betway brand is live in 23 jurisdictions across the globe, it is yet to make major inroads into the US market. The company recently stepped up its expansion plans through a licensing deal with Digital Gaming Corporation (DGC), signed in February.
Super Group has since announced an agreement to acquire DGC, paving the way for Betway to launch in ten states across the country, including Pennsylvania, New Jersey, Colorado, Indiana, and Iowa. The operator will offer pre-match and in-play sports wagering on major US and European sports leagues, in addition to esports.
60 brand partnerships with sports teams, leagues and sports personalities
Betway has also signed more than 60 brand partnerships with sports teams, leagues, and sports personalities, including many US-based agreements. The sportsbook operator has deals with the Chicago Bulls, Golden State Warriors, Brooklyn Nets, and LA Clippers. Most recently, Betway sealed a partnership deal with the Cleveland Cavaliers in March.