A month later after news of a potential merge, US casino operator Bally’s announced definitive terms for its proposed takeover of UK-based gaming company Gamesys.
A month later after news of a potential £2bn takeover deal broke, Bally’s and Gamesys revealed yesterday in a joint statement that their respective boards had reached an agreement where Bally’s Corporation would acquire Gamesys.
The combination of the two businesses will create a leading retail and online gambling business in the US and beyond.
Commenting on the combination, Bally’s chairman Soo Kim said that “this combination will mark a transformational step in our journey to become a leading integrated, omni-channel gaming company with a B2B2C business”, while Gamesys’ existing platform would benefit from Bally’s “fast-growing land-based and online platform”.
Gamesys CEO Lee Fenton added that “the highly complementary nature of our companies and the common history of being highly cash generative will leave us uniquely positioned for success”.
According to the agreement, Bally’s believes the deal would allow it to significantly increase its market share of the expanding US betting and iGaming market with a planned worth up to $45bn (£32bn) at maturity.
The US firm, via Premier Entertainment, will pay 1,850 pence per Gamesys share. Gamesys’ shareholders will also have the option to swap each share for 0.343 Bally’s Corporation shares.
The combined group will be headquartered in Providence, Rhode Island, and its shares will remain listed on the NYSE, whilst a request will be made for Gamesys to delist from the London Stock Exchange.
Lee Fenton becomes Group Chief Executive, whilst COO, Robson Reeves, and Non-Executive Director, Jim Ryan, will join the Bally’s board. Bally’s CEO George Papanier will remain on the board as a Senior Executive, primarily responsible for operating the firm’s retail casino business.