BALLY’S & GAMESYS CONFIRM DEFINITIVE TERMS OF £2BN ACQUISITION DEAL

US-based gambling and racecourse operator Bally’s Corporation has confirmed the definitive terms for its proposed acquisition of UK-based Gamesys Group. 

Bally’s offer to Gamesys’ investors equates to £18.50 GBP ($25.46 USD) cash per share – a 40% premium on the group’s 25 January share price. In total, the purchase price is expected to be over £2 billion. The corporation says it has interim financing for the acquisition in place, through agreements with multiple international banks. 

Current CEO of Gamesys, Lee Fenton, will remain in his position, and COO, Robson Reeves, and Non-Executive Director, Jim Ryan, will be joining the board of the US-based group. Bally’s CEO, George Papanier, will remain on the board, and focus on operating the land-based casino business. 

The newly combined group will be headquartered in Providence, Rhode Island. The group will remain listed on the New York Stock Exchange, while Gamesys will delist from the London Stock Exchange.

Discussing the deal, 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 capitalise on the significant growth opportunities in the US 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.”

While Gamesys Chairman, Neil Goulden, added: “The combination would give unique optionality to Gamesys shareholders. The recommended cash offer, including the Gamesys FY20 dividend, provides a 41.2 per cent 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.”

Staying with Bally’s Corporation, earlier this month the firm, together with Sinclair Broadcast Group, announced the official rebrand of its regional sports networks (RSNs) as Bally Sports.