Bally’s Corporation and online gaming operator Gamesys Group plc have agreed on definitive terms under which the two firms will combine.
The two parties believe that the combination has a “compelling strategic and ﬁnancial rationale” that will create long-term value and would be consistent with their respective long-term growth strategies.
Gamesys would beneﬁt from Bally’s fast-growing land-based and online platform in the US, providing market access through Bally’s operations in key states as the nascent igaming and sports betting opportunity develops there.
In turn, Bally’s would beneﬁt from Gamesys’ technology platform, expertise and experienced management team across the online gaming ﬁeld. The combined entity would, said the firms, be well positioned to capitalize on the full range of opportunities available both in the US and abroad.
Soo Kim, Chairman of Bally’s Corporation, said: “We believe that this combination will mark a transformational step in our journey to become a leading integrated, omni-channel gaming company with a B2B2C business.
“We think that Gamesys’ proven technology platform alongside its highly respected and experienced management team, combined with the US market access that Bally’s provides, should allow the combined group to capitalize on the signiﬁcant growth opportunities in the US sports betting and online markets.
“We are truly excited about the opportunities that this combination would oﬀer and the enhanced and comprehensive experience and product oﬀering that it would enable us to oﬀer our customers.”
Gamesys Chairman Neil Goulden stated: “The combination would give unique optionality to Gamesys shareholders. The recommended cash offer, including the Gamesys FY20 dividend, provides a 41.2% premium to the Gamesys share price at the time of the original proposal from Bally’s and is at a significant premium to the all-time high Gamesys share price prior to the 2.4 announcement.
“However, should Gamesys shareholders wish to invest in a business with a strong foothold in the high-growth US gambling market combined with established markets in the UK and Japan, they can elect for part or all of their holding to be converted into Bally’s shares.”