Sega Sammy Buying GAN for $84 Million

Sega Sammy Creation (SSC) , the Nipponese society known in the first place for its footprint inward colonnade and picture games, is getting sports betting engineering truehearted GAN Ltd. (NASDAQ: GAN) for approximately $84.4 million.

The sell values the software system provider at $1.97 a share, or a 121% premium to where the stockpile closed in(p) today. GAN investors are scheduled to fit in the number 1 canton to balloting on the transaction, which could be finalized past the quaternary canton of 2024.

If the merger is approved past GAN’s shareholders and is completed, all striking GAN ordinary bicycle shares will follow acquired for $1.97 per part inward cash; GAN’s ordinary shares testament no longer live theme to public reporting requirements below the Securities Exchange Act of 1934; and its ordinary shares will no longer patronage on any market. Upon pass completion of the merger, GAN will suit a altogether owned subsidiary of SSC,” according to a statement.

GAN’s plank of directors formed a special committee, comprised exclusively of main(a) directors, to consider and negotiate the offer. The gaming technology company was advised by investment funds bank B. Riley.

Sega Sammy Buy Ends GAN Downward Spiral

UK-based GAN went public in the US around tercet and a half years agone as sports wagering equities were taking the investiture biotic community by storm.

At that time, enthusiasm for boast betting stocks was at a fevered rake — a gunpoint proven past GAN pricing its initial public offering (IPO) at $8.50 and flirting with $13 on its 1st day of trading. From there, the inventory ripped higher, eventually forthcoming $32 a share in Feb 2021, but from there, a prolonged slide down ensued, resulting inwards today’s closing price of 89.1 cents. The stock up has slough 43.91% of its time value over the yesteryear 12 months.

“Formerly GameAccount Network, GAN provides enterprise SaaS solutions for online cassino gaming and sports betting applications, that is to say its GameSTACK net gaming platform,” according to Renaissance Capital, an IPO search firm.

What Sega Sammy’s plans are for GAN remain to be seen. The Nipponese keep company currently has no more unmediated exposure to the regulated sports betting securities industry inward Frederick North America, but that segment is extremely tech-dependent, indicating the buy establish astute.

GAN Sale Not Surprising

GAN’s sale isn’t surprising. Earlier this year, the Irish whiskey companionship GAN announced a strategic review “to pass judgment options usable to hasten our route to amend profitability metrics and a more attractive yield profile.” Such reviews often leading to sales.

Additionally, the cut-rate sale to Sega Sammy isn’t surprising because that companionship antecedently took over a full term loan from GAN creditor Beach Point Capital. Sega Sammy extended get down interestingness deferred payment to GAN as component of that transaction.

“After a serious-minded refresh of economic value creative activity opportunities useable to us, we are proud of(p) to feature reached this concord with SSC,” GAN meantime CEO Seamus McGill in the statement. “Market portion immersion inward the U.S. B2C space, a slower than expected acceptation of regulated online gaming in the U.S., along with changes to cay client contracts do the near-term operating surround intriguing without ample upper-case letter resources. Sega Sammy has those resources and GAN is a strategical full complement to their existing gaming portfolio. We trust this all-cash offer, at a real insurance premium to recent trading prices, is the value-maximizing path for our shareholder.”

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