Super Group – part of SGHC Limited – has entered into a definitive agreement with Sports Entertainment Acquisition Corp, (SEAH) a publicly traded special purpose acquisition company, to bring its global online sports betting and gaming group to the US public markets.
SEAH has agreed to combine with Super Group based on a $4.75bn pre-money equity valuation.
Super Group, the holding company of online sports betting firm Betway and multi-brand online casino outfit Spin, said in a statement that the combination with SEAH will give it access to the capital markets and a strong platform to accelerate its global growth strategy, as well as expansion into the fast-growing US online sports betting and gaming market.
Neal Menashe, CEO of Super Group, said: “We have established our group as a truly global, scaled and profitable digital gaming business, delivering on our vision to bring first-class entertainment to the worldwide betting and gaming community. Becoming a public company will give us the tools to continue to grow our leading product and technology offering and deliver a strengthened brand-driven marketing strategy.
“This listing will position us strongly to capitalize on the significant global growth opportunities ahead ‒ including in the US market ‒ enabling us to further expand our robust, loyal and engaged customer base.”
Eric Grubman, Chairman of the Board of Directors of SEAH, said: “Super Group is an online gaming and betting powerhouse with a track record of global growth and a strong balance sheet. Super Group’s core DNA is rooted in digital technology, which drives its unparalleled expertise in data and analytics.
“Neal and Super Group’s diverse and multi-talented global team have a great playbook for how to successfully launch and achieve profitable growth in new markets, and we look forward to partnering closely with them on this exciting next chapter as a public company.”
Super Group’s Betway subsidiary currently has more than 60 brand partnerships with many teams, leagues and sport personalities across the globe, including in the US NBA teams Chicago Bulls, Golden State Warriors, Brooklyn Nets and LA Clippers. In Europe the firm is partnered with the English Premier League football team West Ham United and esports team Ninjas in Pyjamas.
The company has also entered into an agreement to acquire Digital Gaming Corporation (DGC), subject to obtaining customary regulatory approvals. DGC has the exclusive right to use the Betway brand in the US and has secured market access for online sports betting and gaming in up to an initial 10 US states including Pennsylvania, New Jersey, Colorado, Indiana and Iowa.
Super Group said that its US growth plans will be complemented by Grubman and John Collins who bring with them a wealth of experience and relationships within the broader US sports and entertainment ecosystem.
In addition, the group will continue the roll out of its offerings on a global basis including the launch in multiple new licensed territories in 2021.
Assuming no redemptions by SEAH’s shareholders, the transaction will deliver approximately $450m of cash to the combined company, and Super Group’s existing shareholders will hold approximately 88% of the shares in the combined company on closing. It is expected that the group will have approximately $200m in cash on its balance sheet on closing.
While the boards of directors of both parties have unanimously approved this transaction, it requires the approval of shareholders of SEAH and remains subject to other customary closing conditions. The deal is expected to close in the second half of 2021.