Bally’s Corporation and Gamesys have agreed definitive terms on the combination of the two businesses, to create a leading retail and online gambling business in the US and beyond.
Per the announcement, made under Rule 2.7 of the UK Takeover Code, Bally’s is to acquire Gamesys’ issued and outstanding share capital via Premier Entertainment, its wholly-owned subsidiary.
The combination will be effected through a court-sanctioned scheme of arrangement under Part 26 of the UK Companies Act.
It will see Bally’s, via Premier Entertainment, pay 1,850 pence per Gamesys share. This represents a 14.4% premium on the Jackpotjoy operator’s closing share price of 1,642 pence per share on 23 March, the final day before an announcement on talks were made.
It also represents a 41.2% premium on Gamesys’ closing share price of 1,330 pence on 25 January, the day before Bally’s made its initial proposal. For Gamesys’ three-month average closing price to 23 March, of 1,373 pence per share, it represents a 36.7% premium.
“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,” Bally’s chairman Soo Kim said. “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 capitalise 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 chief executive Lee Fenton, who will become group CEO once the deal completes, added: ”After more than two decades honing our craft in online gaming, this Combination would give all at Gamesys an opportunity to fully leverage the technology, product and know-how we have developed in what will become the largest regulated online gambling market in the world.
“I believe the highly complementary nature of our companies and the common history of being highly cash generative will leave us uniquely positioned for success.”
More to follow.