Bally’s Corporation to Acquire Gamesys

Bally’s Corporation (NYSE: BALY) and Gamesys have announced that their boards have reached an agreement for Bally’s to acquire Gamesys. The combination is set to be finalized by Bally’s subsidiary Premier Entertainment, which will be helping to finance the cash deal.

As per the agreement, Bally’s will be paying 1,850 pence for each Gamesys share, which is roughly a 14.4% premium on Gamesys’ closing price of 1,642 pence per share on March 23 this year. When Bally’s first made an offer in January, Gamesys’ closing price per share was 1,330 pence, which would mean a 41.2% premium and a 36.7% premium for the three-month average closing price to March 23.

We believe that this combination will mark a transformational step in our journey to become a leading integrated, omni-channel gaming company with a B2B2C business. We think 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.

Soo KimBally’s Chair

The chair of Gamesys, Neil Goulden, said that the combination of the two companies gives “unique optionality to Gamesys shareholders” and added that the recommended cash offer “is at a significant premium to the all-time high Gamesys share price prior to the 2.4 announcement”.

If the deal is not competed by the ex-dividend date of September 9 2021, then the Gamesys Board will declare a second interim dividend. The first dividend would be 28 pence per share and the second will be 15 pence per share.

In the statement, Bally’s explained that it believes that the US online betting industry is growing and that by reaching a deal with an established brand it will be able to take advantage of the growth opportunities.

The statement added that Bally believes the “combination represents a compelling strategic and financial opportunity to improve the offering and experience for customers.”