Japanese group Sega Sammy has completed an agreement to acquire GAN Limited, a Nasdaq-listed and Bermuda-organized SaaS provider for casino operators in the United States and B2C online gaming operator in Europe and South America.
If the merger is approved by GAN’s shareholders and is completed, all outstanding GAN ordinary shares will be acquired for $1.97 per share in cash.
The value reflects a premium of 121 percent over the closing price of GAN’s ordinary shares on November 7, 2023, the last trading day prior to the date of this announcement.
Sega Sammy indicated it will help GAN expand its gaming business and wider gaming portfolio.
‘Among the online gaming markets in the U.S., the Company has identified the iGaming market, which is expected to expand in the future, as a particularly promising market. As more states legalize online gaming, we expect existing operators to expand and new operators to enter the online gaming market,’ Sega Sammy noted as some of the reasons for the deal.
‘The complementary nature of GAN’s market leading online gaming technologies and solutions, and the customer base and content development capabilities of SSC, which provides gaming equipment and content to land-based casino operators in North America, is expected to result in increased distribution of SSC’s compelling casino content and expanded customer reach.’
Meanhwile, Seamus McGill, Chairman and Interim Chief Executive Officer of GAN commented that ‘market share concentration in the U.S. B2C space, a slower than expected adoption of regulated online gaming in the U.S., along with changes to key customer contracts make the near-term operating environment challenging without ample capital resources’
‘Sega Sammy has those resources and GAN is a strategic complement to their existing gaming portfolio,’ he concluded.