Megamerger agreement

Bally's and Gamesys announce definitive terms of combination

The combination will be effected through a court-sanctioned scheme of arrangement under Part 26 of the UK Companies Act.
Reading time 1:39 min
Bally’s Corporation and Gamesys Group have agreed on definitive terms by which the pair will undertake a business combination. News of the potential move first broke last month, with the proposed $2bn transaction to see the US casino operator absorb Gamesys in a deal worth 1,850 pence per share.

Bally's Corporation today announced that the Company and Gamesys Group plc have agreed on definitive terms by which Bally's will combine with Gamesys, a global, online gaming operator. 

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. 

Commenting on the combination, Soo Kim, Chairman of Bally's Corporation, said, "We believe that this combination will 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 capitalize on the significant growth opportunities in the US sports betting and online markets."

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 US. 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 US and abroad.

Commenting on the combination, 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% 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 US gambling market combined with established markets in the UK and Japan, they can elect for part or all of their holding to be converted into Bally's shares."

Investor presentation: click here

Leave your comment:
Subscribe to our newsletter
Enter your email to receive the latest news