PROVIDENCE – Bally’s Corp. has agreed to acquire British online gaming operator Gamesys Group PLC in a multibillion dollar deal, according to documents filed on Tuesday with the Securities and Exchange Commission.
Bally’s has entered into a definitive agreement to purchase the Gamesys’ common shares, with shareholders being able to elect to receive newly issued shares of Ballys at a rate of $25.42 per Gamesys share, or to opt for a share alternative at $20.85 per Gamesys share. Gamesys has 109.5 million common shares outstanding and 2.5 million shares issuable under various instruments, the companies said.
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If all Gamesys shareholders opt for the share alternative, the deal would be worth up to $2.2 billion, the companies said. Bally’s said that the total purchase consideration, including debt and the value of Bally’s shares issued, would be roughly $3.4 billion.
Under terms of the agreement, Gamesys CEO Lee Fenton would become CEO of the combined entity. Bally’s CEO and President George Papanier would remain a member of the Bally’s board of directors and the senior executive running the Bally’s casino business.
The combined entity would be headquartered in Providence.
“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,” said Soo Kim, chairman of Bally’s in a statement. “We think that Gamesys’ proven technology platform alongside its highly respected and experienced management team, combined with the U.S. market access that Bally’s provides, should allow the combined group to capitalize on the significant growth opportunities in the U.S. 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.”
The deal is expected to close in the fourth quarter of 2021, but is subject to regulatory approvals.
View terms of the proposed deal online.
Separately, Bally’s also announced Tuesday that it had agreed to purchase Tropicana Las Vegas Hotel and Casino from Gaming and Leisure Properties Inc. in a deal worth roughly $308 million. That deal is expected to close in early 2022 and is also subject to regulatory approval.
The Las Vegas property is located on a 35-acre parcel on the corner of Tropicana Boulevard and Las Vegas Boulevard, the company said. It includes 1,470 guest rooms, 50,000 square feet of casino space with 1,000 gaming positions, a 1,200-seat performance theater and 100,000 square feet of convention and meeting space.
“Landing a preeminent spot on the Las Vegas Strip is a key step for us. The strip is visited by over 40 million players and guests per year, which we believe will significantly enhance Bally’s customer base and player database, as well as unlock marketing opportunities to leverage the iconic Bally’s brand,” said Papanier in a statement. “This expansion will also support the growth and development of our online and interactive business. We look forward to exploring significant redevelopment of the property, which we believe will enhance its financial profile.”
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
