JPJ Group has signed a conditional agreement to acquire the majority of its technology partner Gamesys’ assets for $620.9 million.
The group will acquire the Gamesys platform, and bingo content studio, as well as its B2C real-money gaming sites Virgin Games, Heart Bingo and Monopoly Casino. The group will also take over Gamesys’ New Jersey-licensed Virgin Casino site, operated in partnership with Tropicana Atlantic City.
Since acquiring Gamesys’ Jackpotjoy brands in 2015, the business has continued to provide JPJ Group with iGaming content, its technology platform and operational support. Through the acquisition, JPJ will take ownership of the technology platform and operations, reducing its reliance on third party providers, the company said in a press release.
“The acquisition ensures full strategic alignment, business continuity and minimization of execution risk,” the release said.
The London-listed JPJ will not acquire the Virgin Bet sports betting business, nor the recently acquired Livescore sports data and media business. Gamesys will also retain its non-bingo games studio, and its minority equity investments in a Norwegian games studio and US sports betting business, as well as certain immaterial subsidiaries, the release said.
Gamesys will carry out a restructuring to separate the assets to be acquired from the business units it will retain. Upon completion of the deal, JPJ will pay £240m in cash, with a further £10m to be paid to Gamesys shareholders 30 months after the deal’s completion.
It will also issue 33.7 million new shares to Gamesys shareholders, priced at 10 pence per share, with an approximate value of £240 million.
“This acquisition marks an important transformational step in JPJ’s growth, providing significant benefits for shareholders, employees and customers,” JPJ Executive Chairman Neil Goulden said in the release. “For shareholders, we expect the acquisition to deliver earnings accretion in the first full financial year of ownership, while our employees will benefit from the combination of two companies with a strong commitment to responsible gaming and where the greater scale will further enhance our product development and technology capabilities. Our customers will also now have an even greater choice of major brands and different games, all on one platform, creating a truly leading UK and international operator.”
The new business (the Enlarged Group) is expected to achieve annualized cost savings in the “single-digit millions”, which will be released in the first full financial year following the deal’s completion. JPJ will also benefit from a significant UK-based infrastructure, allowing it to streamline elements of its current business, the release said.
