Bally’s Corporation and Gamesys Group have announced the two sides have agreed terms on a merger worth $2.7 billion.
Under the provision of the deal, the Nevada-based gaming technology company would acquire Gamesys. Bally’s will pay $25.37 per share, representing a premium of 12.7% on Gamesy’s closing share price on March 23, 2021.
Bally’s Ready to Pay
Its shareholders can choose to acquire their holding for newly issued Bally’s shares at an exchange rate of 0.343. Since Bally’s shares ended trading at market close in New York at a price of $66.34 per share, 0.343 shares would be worth $22.7.
The deal has already been greenlighted by Gamesys founders and executives, who hold 30.7% of the company’s shares.
The current share offer will be accepted if the deal gets approved, which means the maximum amount of money Bally’s will pay for the acquisition of Gamesys can’t exceed $2.2 billion. Once the merger is completed, Lee Fenton, currently CEO of Gamesys, would be appointed chief executive of Bally’s new digital division. Two Gamesys executives would join the board of the combined group.
Bally’s CEO, George Papanier, will remain on the board following the merger but will move into a new position. Papanier will be in charge of running Bally’s land-based property.
A Mutually Beneficial Deal
The two sides also issued a joint press statement, where they explained the reasons behind the deal. Both Bally’s and Gamesys are convinced the move would be mutually beneficial. By combining an already proven technology and platforms with global brands across the US, the new company would be able to make the most out of growth opportunities.
The announcement explained the new side would use existing customer bases and products. The rapidly-growing US online market should be the main focus of future business endeavors.
Bally’s will also be able to use Gamesys technology platform.
Bally’s chair Soo Kim said his side believed the merger represented an essential step towards becoming a leading company with B2B2C business. He explained that Gamesys’ reliable technology and experienced management team would allow the new division to make the most out of growth opportunities in the US online market.
Kim pointed out the move would help the two sides further enhance their offering of products offered to their customers, allowing them to increase their presence across the US market.
The executives agreed the entrepreneurial energy would help establish a new and powerful company. As Bally’s CEO Fenton said, the shared vision should lead the new company forward, making for a thrilling journey for both employees and customers.
According to the boards, the new division will pursue growth opportunities through strategic M&A and reinvestment.
Bally’s operates a total of eleven land-based casinos across the US and has recently significantly expanded its digital capacity by acquiring several assets, such as SportCaller, Bet.Works and Monkey Knife Fight.
Bally’s plans to finance the merger through a bridge facility, while a capital raise should be used to refinance it partially.