SEGA SAMMY has purchased GAN Limited
SEGA SAMMY Officially Acquires Gaming Account Network (GAN)
In a significant development for the online gaming solutions market, particularly in the real money online casino and online sports betting segments, SEGA SAMMY has announced the acquisition of GAN, a North American provider. The deal seeks to merge GAN with SEGA SAMMY's affiliated entity, SEGA SAMMY CREATION (SSC), which recently acquired GAN's outstanding securities.
The acquisition price for GAN securities amounts to $1.97 per share in cash, representing a premium of over 121% compared to GAN's closing stock price. Once the merger with SSC is complete, the ordinary shares will no longer be traded on the NASDAQ Global Stock Market.
GAN is renowned for its software-as-a-service solutions predominantly in the U.S. market. Its subsidiary, Coolbet, stands out as a leader in online sports betting technology across key European and Latin American markets. Additionally, GAN has developed GameSTACK, a proprietary enterprise software system for internet gaming. This system is licensed to land-based casinos as a turnkey solution for regulated real money online casino gaming, also including online sports betting and virtual Simulated Gaming.
Last week, officials revealed that the merger between the two companies would be finalized before the end of the month, marking the culmination of an 18-month process that began in November 2023.
Seamus McGill, GAN's Chief Executive Officer, expressed his enthusiasm about the merger, stating that joining forces with SSC would help them deliver unparalleled, unique gaming experiences for their clients and players. McGill further added that GAN's board of directors carefully considered various options to maximize shareholder value, and the SSC's recognition of the value of their assets and people leaves them confident that this transaction is in the best interest of their shareholders and offers a promising home for their assets to thrive.
Koichi Fukazawa, Senior Executive Vice President and Group CFO of SEGA SAMMY, shared similar sentiments about the acquisition. Fukazawa mentioned that they are excited to welcome the GAN team and anticipate the significant experience they bring, particularly in the U.S. market, along with their technical and development resources. Fukazawa believes this marks a new chapter in SEGA SAMMY's operations, and they look forward to offering increased product offerings and resources to their customers.
In March, GAN released its FY 2024 results, showing a 4% revenue increase year-over-year to $135 million. This growth was primarily driven by a 17% rise in B2B revenue, reaching $50.7 million, which consisted of real money casinos and online sportsbooks.
The acquisition of GAN Limited by SEGA SAMMY is poised to strengthen SEGA SAMMY's presence and capabilities in the U.S. market, offering potential for significant growth and expansion in the online gaming market. It combines SEGA SAMMY's global gaming expertise with GAN's specialized B2B technology for real money internet gaming solutions, potentially leading to the development of new products and services. By integrating GAN's resources, SEGA SAMMY may also achieve operational efficiencies and synergies, potentially leading to cost savings and improved profitability. Furthermore, under SEGA SAMMY's leadership, GAN is expected to continue growing as a global player in the online gaming industry.
- The acquisition of GAN by SEGA SAMMY could lead to the creation of innovative technology in the sports sector, as GAN is known for its leading online sports betting technology.
- With SEGA SAMMY's global gaming expertise and GAN's specialized B2B technology for real money internet gaming solutions, the merged entity may develop new products and services, bridging the gap between technology and sports.
