Bally’s is set to acquire Gamesys’ issued and outstanding share capital through its subsidiary Premier Entertainment, as announced under Rule 2.7 of the UK Takeover Code. The acquisition will be carried out via a court-sanctioned scheme of arrangement under Part 26 of the UK Companies Act.
The deal will involve Bally’s paying 1,850 pence per Gamesys share, representing a 14.4% premium on the closing share price on 23 March and a 41.2% premium on the closing share price on 25 January. Shareholders will also have the option to exchange each share for 0.343 Bally’s Corporation shares.
Once completed, the combination of Bally’s and Gamesys will create a leading integrated, omni-channel gaming company with a B2B2C business. The goal is to capitalize on the significant growth opportunities in the US sports betting and online markets, leveraging Gamesys’ technology platform and experienced management team along with Bally’s market access.
The deal is expected to enhance the comprehensive experience and product offering for customers. It aligns with Bally’s strategy to increase its market share in the expanding US betting and iGaming market, estimated to be worth up to $45bn in the future.
The transaction is subject to approval from Gamesys shareholders and Bally’s shareholders for the issuance of new shares. The combined business will be aided by the pending acquisition of sportsbook platform Bet.Works and a partnership with Sinclair Broadcast Group, providing a broad portfolio of gaming offerings including land-based gaming, online sports betting, online casino, poker, bingo, daily fantasy sports, and free-to-play games.
To finance the cash portion of the acquisition, Premier Entertainment has secured a bridge loan provided by Deutsche Bank, Goldman Sachs, and Barclays Bank. Gaming and Leisure Properties Incorporated has also committed to purchasing Bally’s shares worth $500m. Bally’s plans to reduce the borrowed sum through an offering of common stock and tangible equity units.
The completion of the deal awaits approval from Gamesys shareholders and regulatory clearance. Shareholders owning 33.3% of Gamesys’ issued ordinary share capital, including directors, have expressed support for the combination.
If approved, the transaction will benefit both Bally’s and Gamesys, creating unique opportunities for shareholders and enabling the combined business to pursue further growth and expansion.
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