GAN, North American real money gaming and sports betting provider, has announced a definitive agreement and plan of merger with Sega Sammy Creation (subsidiary of Sega Sammy Holdings). Sega Sammy, which manufactures gaming machines, will receive financial advice from SMBC Nikko Securities, while GAN has retained B. Riley Securities as its financial advisor throughout its strategic review process.
Each of GAN’s ordinary shares will be converted into the right to receive $1.97 per share, or a premium of 121% over GAN’s closing share price on the last trading day before the announcement, November 7.
In October, GAN was approved for a two-year operating license in Nevada, but the company also saw its CEO, Dermot Smurfit, resign in September after taking up the role in 2010.
Chairman and Interim CEO for GAN, Seamus McGill, commented on the M&A, “After a thoughtful review of value creation opportunities available to us, we are pleased to have reached this agreement with Sega Sammy Creation. Market share concentration in the US B2C space, a slower-than-expected adoption of regulated online gaming in the US, 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. We believe this all-cash offer, at a substantial premium to recent trading prices, is the value-maximizing path for our shareholders.”
A shareholders meeting is still necessary for the approval of the proposed merger and must be held by March 31 2024. GAN expects that the merger will close during 2024’s fourth quarter.
