British gaming operator Gamesys has agreed to a possible acquisition by the American company Bally’s Corp. US casino owner Bally’s struck a purchase deal that could value the UK company at more than £ 2 billion.
Under the possible combination, Bally’s would pay £ 18.50 in cash for each Gamesys share – 12.7% more than the March 23 closing price and 39.1% more than the closing price Gamesys action before the initial proposal on 26 January.
The companies reported that Gamesys would benefit from the Bally platform in the United States, as online games and sports betting continue to grow in the country. Bally would gain Gamesys technology, experience and management, with President Lee Fenton, leading the combined group.
The Gamesys board told Bally’s, which intends to recommend accepting the cash offer to shareholders, that there is still the possibility of debate about the terms and conditions of the acquisition. Fenton, chief operating officer Robeson Reeves and three founding investors, who own a total of 30.5% of the company, have already stated that they will support the business.
Soo Kim, president of Bally’s, commented: “We believe that this combination would mark a transformation stage in our journey to become a leading integrated gaming company.”
He added: We believe that Gamesys technology platform, alongside its highly respected and experienced management team, combined with the access to the US market that Bally’s offers, should allow the group to capitalize on significant growth opportunities in the markets sports and online betting in the United States ”.
Gamesys shareholders opt for payment in Bally’s shares
Gamesys shareholders will be able to receive all or part of the payment for the acquisition of shares at a value of 0.343 of Bally’s share for each Gamesys share, valuing Gamesys shares at £ 16.55 based on Bally’s closing price on Tuesday -market.
However, Gamesys’ founders and executives have already stated that they would choose this option instead of receiving cash in order to earn from the creation of the combined company.