Jackpotjoy owner JPJ Group announced Thursday it entered into a deal to buy gaming software developer and operator Gamesys for or a total valuation of £490 million, to cut its reliance on third-party technology platforms and tap into Gamesys’ brands to boost international growth.
Gamesys’ Virgin Bet branded sports betting business, Livescore sports data and media business and certain non-bingo games studio and supply business of Gamesys are not part of the deal, JPJ said in a statement. However, JPJ will buy games content and brand licenses of Virgin Games, Virgin Casino, Monopoly Casino, and Heart Bingo.
The acquisition is expected to add double-digits to JPJ earnings per share in the first full financial year ownership in fiscal year 2020.
JPJ will fund the deal through 250 million pounds in cash, of which 175 million pounds would be from JPJ’s existing debt facilities, and 240 million pounds through new shares. The acquisition is subject to JPJ shareholder approval, customary regulatory conditions and the Gamesys Group Reorganisation.
On Monday, Gamesys was fined £1.2m (USD 1.5 M) by the UK Gambling Commission for failing to prevent gambling harm and breaching money laundering regulations.