US casino owner Bally’s has agreed terms to takeover online gambling firm Gamesys in a deal worth £2 billion.
Bally’s Corporation, who recently completed the acquisition of Monkey Knife Fight, revealed that Gamesys shareholders would receive 1,850 pence per share.
The news saw shares in London-based Gamesys soar overnight. the company’s shares have now risen by over 150% since March of last year.
Bally’s has also proposed an alternative plan for investors. This would see each investor receive 0.343 new Bally’s shares in exchange for their Gamesys stock. This proposal puts a value of 1,665 pence on Gamesys shares.
In a statement released by the London Stock Exchange, Soo Kim, Chairman of Bally’s, said:
“We believe that this combination would 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.”
Speaking of the proposed takeover, Lee Fenton, CEO of Gamesys, said:
“From our first meeting to now it has been the entrepreneurial energy of the two businesses that has brought us to the edge of creating a uniquely powerful company. Our shared passion and vision to capitalise on technology disruption to better serve our customers, wherever they may be, should make for an exciting journey for our employees, customers and shareholders alike.”
Fenton will become CEO of the newly combined group while two Gamesys directors will join the Bally’s board.