£2 Billion Merger Possible Between Gamesys and Bally’s
The boards of Bally’s Corporation (NYSE: BALY) and Gamesys Group (LON: GYS) have reached an agreement on the terms of a merger that would see Bally’s acquire Gamesys for £2 billion.
The deal, which is designed to help the combined business expand in the US market, would see Bally’s pay £18.50 for each Gamesys share, which is a 12.7% premium on the closing share price on 23 March.
Alternatively, Gamesys shareholders will have the option of exchanging their holding for 0.343 newly issued Bally’s shares per Gamesys share. At present, a Bally’s share is worth around £16.55.
Gamesys’ founders and executives, who hold 3.7% of its shares, have agreed to support the deal and accept the share offer. This means that the maximum in cash that may be paid for the deal is £1.6 billion.
The deal would see Lee Fenton, the current chief executive of Gamesys, become chief executive of the combined group and two additional Gamesys directors would join its board. The chief executive of Bally’s, George Papanier, would stay on the board and adopt a new role running Bally’s land casinos.
The deal announcement said, “Bally’s and Gamesys believe that having a combination of both proven, developed technology and land-based platforms across key US states, with global brands, existing customer bases and complementary product offerings will be key to taking advantage of these growth opportunities.”
Gamesys would benefit from Bally’s land operations, while Bally’s would benefit from Gamesys’s technology platform.
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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.
Lee Fenton added that the two businesses share an “entrepreneurial energy” that will result in “a uniquely powerful company”. He added, “Our shared passion and vision to capitalise on technology disruption to better serve our customers, wherever they may be, should make for an exciting journey for our employees, customers and shareholders alike.”
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