Bally’s Corp. announced that it has agreed to terms with U.K.-based online betting operator Gamesys Group PLC under which the two companies will merge.
Rhode Island-based Bally’s announced that the company and Gamesys Group have agreed on definitive terms by which Bally’s will combine with Gamesys.
Consistent with U.K. regulatory requirements, Bally’s arranged interim financing for the transaction from Deutsche Bank Aktiengesellschaft, London Branch, Goldman Sachs Bank USA and Barclays Bank PLC. Bally’s intends to seek to refinance the bridge facility and Gamesys’ debt through one or more capital market transactions, which could include public or private offerings of Bally’s shares or other securities and a company-wide bank credit facility. There can be no assurance to the timing or terms of such capital markets transactions.
Commenting on the combination, Soo Kim, chairman of Bally’s Corp., said, “We believe that this combination will mark a transformational step in our journey to become a leading integrated, omnichannel gaming company with a B2B2C business. We think that Gamesys’ proven technology platform alongside its highly respected and experienced management team, combined with the U.S. market access that Bally’s provides, should allow the combined group to capitalize on the significant growth opportunities in the U.S. 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.”
Bally’s and Gamesys officials say their boards of directors believe that the combination has a compelling strategic and financial rationale, would create long-term value for both companies and would be consistent with the companies’ respective long-term growth strategies. Gamesys would benefit from Bally’s fast-growing land-based and online platform in the United States, providing market access through Bally’s operations in key states as the nascent iGaming and sports betting opportunity develops in the U.S.
In turn, Bally’s would benefit from Gamesys’ proven technology platform, expertise and highly respected and experienced management team across the online gaming field. The combined entity would be well positioned to capitalize on the full range of opportunities available both in the U.S. and abroad.
Neil Goulden, chairman of Gamesys, said, “The combination would give unique optionality to Gamesys shareholders. The recommended cash offer, including the Gamesys FY20 dividend, provides a 41.2 percent 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 U.S. gambling market combined with established markets in the U.K. and Japan, they can elect for part or all of their holding to be converted into Bally’s shares.”
