Bragg Gaming to Enter North American Market
Bragg Gaming (TSE: BRAG), the technology provider, is set to acquire Spin Games, the Nevada-based business-to-business gaming content provider. The acquisition will be Bragg Gaming’s first entry in to the US market.
The deal is to be a cash-and-stock transaction with a value of $30 million. Spin Games is set to receive $10 million in cash and $20 million in common shares of Bragg. A total of $5 million of shares are to be issued on closing and the remainder over the next three years.
When the deal is complete, Spin’s founder and CEO Kent Young will join Bragg Gaming as President for the Americas, where he will have an important part in implementing the company’s US market growth strategy.
The Bragg Gaming subsidiary Oryx Gaming is set to be integrated with Spin Gaming as the company aims to produce an integrated gaming platform for the new market.
Spin’s existing state gaming licenses and established integrations with online casino operators, comprising the majority of the US market uniquely positions our company for future growth in the North American market. This transaction lays a strong foundation for our strategy of building a tier one vertically integrated igaming business in the US.
The acquisition will give Bragg Gaming access to some of the biggest operators in the US, such as BetMGM, Caesars, FanDuel and DraftKings (NASDAQ: DKNG), which all already work with Spin. It has been clear since the start of this year that Bragg aimed to expand in to North America, and this deal represents a major step forward.
Kent Young, Spin Games CEO, welcomed the deal saying that they are extremely excited to be joining Bragg and look forward to a successful future together. He added that deal will “better position the combined company to expand its support of the rapidly growing US iGaming market with our proprietary and third-party content and our leading remote gaming server technology.