US casino operator Bally’s and UK-based gaming company Gamesys have reportedly agreed on terms of a £2bn merger that would see Bally’s acquire the transatlantic company, which would create “a uniquely powerful company” said Gamesys CEO Lee Fenton.
A transformational step
The two companies believe that online gaming and sports betting in the US present significant opportunities for synergy between the two companies.
“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” the statement said.
Bally’s chair Soo Kim further commented that they believe that this combination “would mark a transformational step” in their journey to become “a leading integrated, omni-channel gaming company with a B2B2C business”.
Besides, Bally’s long-term growth strategy is said be accelerated by this M&A, while Gamesys’ existing platform would benefit from Bally’s “fast-growing land-based and online platform.
A great deal and growth opportunity
The founders and executives of the UK gaming company – who represent 30.7% – have already agreed to support the £2bn takeover deal. A deal that would see Gamesys’ shareholders receive £18.50 per share or they may alternatively exchange their holding for 0.343 newly issued Bally’s shares per Gamesys share.
If the deal goes through, Gamesys CEO Lee Fenton would lead the newly combined group as Bally’s executes further M&A to realise US-focused B2B2C ambitions and George Papanier, chief executive of Bally’s, would stay on the board after the merger and oversee Bally’s land-based casinos.
The boards added in the statement that the new business may “pursue growth opportunities through reinvestment and strategic M&A”.