JPJ Group has confirmed that it will be purchasing bingo software developer and operator Gamesys in a deal set to be valued at approximately $621.1m, in a move to boost the brand’s international exposure.
The Jackpotjoy owner has stated that the new company will be rebranded as Gamesys Group Plc as the group is expected to qualify as part of FTSE mid cap index.
The new deal will allow JPJ to tap into Gamesys’ brands which will help support the group’s growth strategy for the coming months. While also supporting JPJ’s international presence, the acquisition will see JPJ limit its reliance on third-party technology platforms.
It has since been clarified that Gamesys’ Virgin Bet branded sports betting business, it’s Livescore sports data and affiliate site, as well as certain non-bingo games studio and supply business will not be included in the transaction between the two parties.
However, JPJ will buy games content and brand licenses of Virgin Games, Virgin Casino, Monopoly Casino, and Heart Bingo.
The acquisition is expected to add double-digits to JPJ’s earnings per share in the first full financial year ownership in fiscal year 2020, which have already up 5.2 per cent at 809 pence this morning.
The deal is due to be completed via a £250m cash consideration, £175m of which will originate from JPJ’s existing debt facilities. The remaining £240m will be funded via shares.
JPJ also expects annualized cost savings of “single digit millions” pounds in the first full financial year after completion of the deal.