Bally’s has reached a principal agreement to buy Gamesys in another acquisition that will broaden its reach in the US gaming market.
The deal will see Bally’s pay $2.74bn in cash or $18.50 per Gamesys share. Shareholders can exchange their holding for 0.343 newly issued Bally’s shares per Gamesys share.
Gamesys’ founders, who hold 30.7 per cent of the company’s shares, have shown their support for the deal and have already decided to take the share offer if the merger finalises.
In terms of management, the current CEO of Gamesys, Lee Fenton, would become CEO of the combined company. George Papanier, the current CEO of Bally’s would move into a new role running the company’s land-based casino properties. Papanier would also remain on the board.
The companies said: “Bally’s and Gamesys believe that having a combination of both proven, developed technology and land-based platforms across key US states, with global brands, existing customer bases and complementary product offerings will be key to taking advantage of these growth opportunities.”
As for the merging of a casino and tech company, Soo Kim, chair of baily’s board, said: “We believe that this combination would 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 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.”