On September 20, Rank Group Plc received permission from the UK Gambling Commission to acquire Stride Gaming for £115 million (US$143.6 million).
Seeking to significantly enlarge its UK digital portfolio, Rank agreed to an all-cash purchase of Stride Gaming assets, moving to acquire the London AIM bingo network’s brands of Kitty Bingo, Lucky Pants, Bingo Extra and Lucky VIP, Regal Wins and Spin&Win. The acquisition of Stride will have its final regulatory hearing with the Royal Court of Jersey, on October 2, with the deal expected to conclude two days later, when Stride will cease trading on the London AIM exchange.
The commission’s approval comes after Stride shareholders voted in favor of the acquisition in July. More than 96 percent of votes cast backed the transaction. Rank told iGaming Business the merger would create a business with genuine scale and capability in the digital market, with pro forma digital net gaming revenues of approximately £185 million.
Rank also said the deal would improve its performance and reduce costs through migration to Stride’s proprietary technology platform and in-house system, as well as enhance its management team with the addition of senior Stride staff. In addition, the merger would create significant value from synergies and offer greater financial flexibility to the combined business.
Last month, Rank announced disappointing flat sales and a 22 percent year-on-year drop in operating profit in spite of digital growth driving an improved performance in the six months ending June 30. Operating profit slumped to £39 million from £50.1million year over year.
