In a rapidly evolving world of gambling, corporations in the United States and around the world are faced with everyday challenges to adapt and survive in one of the most competitive industries across the globe.
As trends change and companies grow, being at the top of your game in the gaming industry is imperative to remaining a leading brand and providing the absolute best experience possible.
With that said, it is big news but not surprising that Bally’s Corporation and the Gamesys Group have announced a new merger that is a game-changer and groundbreaking for the industry.
Billion dollar deal
The merger is worth an estimated $2.7 billion, or €2.3 billion and will see Bally’s Corporation acquire Gamesys Group, in a deal that has already seen the terms agreed.
This latest acquisition comes just days after Bally’s announced the take-over of Monkey Knife Fight, a leading daily fantasy sports platform in the US and Canada.
According to reports, Bally’s Corporation will pay around $25 per share, which represents just over twelve percent premium on the group’s closing share price as of the 23rd March 2021.
Gamesys shareholders may exchange their shares for 0.343 Bally’s shares, which were currently trading at an estimated $66 per share when the market closed yesterday in New York.
The current Gamesys Group chief executive officer Lee Fenton will become the new chief executive officer of the combined group after the merger.
It is not yet confirmed who the other two directors from Gamesys will be on the board.
Additionally, following the merger, current chief executive officer of Bally’s Corporation George Papanier will remain on the board and take on the new role of operating the land based casino estate of the corporation.
A growing US market
This deal between the two well-known gaming companies marks a significant milestone in the offline and online gaming industry and has come about to meet demand, remain competitive and accommodate the fast growing online market in the US.
There are a number of growth opportunities available now and in the future and the two companies have a significant foothold in the land-based and digital industries with proven developed technology across a number of states in America.
Furthermore, the merger will bring together two very large existing customer bases and product offerings that will look to take advantage of the huge growth in the United States as more states legalise online betting and gaming.
Without a doubt, Gamesys has a stronger online presence, with Bally’s holding a stronger offline presence, so the two companies will compliment each-other in combining and transforming to become a leading integrated omni-channel company.
Reportedly, Bally’s Corporation is intending to finance the acquisition with a bridge facility, including capital raise refinance.