Smurfit-backed gaming tech firm GAN will be sold to Japan’s Sega Sammy

GAN was identified to be looking for a purchaser and the deal comes after long-time CEO Dermot Smurfit Jr stood down in September.The enterprise has had a comparatively excessive profile regardless of its measurement. Early backers included Dermot Desmond, former Jefferson Smurfit chief Michael Smurfit Sr and Smurfit Kappa boss Tony Smurfit.The sale value shouldn’t be far off the valuation when the enterprise first listed in London a decade in the past and a fraction of the $256m valuation when it moved its itemizing to New York and raised contemporary fairness in 2020.Still, the provide from Sega Sammy is a 120pc premium to GAN’s share value forward of the provide being introduced. The inventory surged in afternoon buying and selling in New York.Shares within the enterprise had soared in 2020 and 2021, lifted by optimism in regards to the gaming sector and a normal hike in digitally centered shares.However, the enterprise racked up a close to $200m loss final yr and warned in April that extra losses would impair the corporate’s liquidity and would possibly drive it to increase contemporary capital.The large loss got here because it shouldered an impairment after its €149m acquisition of Estonia-headquartered Coolbet, having raised $105m from buyers the earlier December to half finance the deal.Sega Sammy mentioned it will pay $1.97 per share for GAN, a 121pc premium to Tuesday’s closing value, or a complete consideration of about $84.4m. Given the dimensions of the premium the provide, which has been backed by the GAN board, seems like a slam dunk though it will want formal sign-off from shareholders.GAN’s essential enterprise is offering expertise for actual cash web gaming companies whereas Coolbet added a world consumer-facing sports activities betting arm.The chairman and interim CEO of GAN, Seamus McGill, mentioned a shifting market dynamic has made the “near-term working atmosphere difficult with out ample capital sources” for the enterprise.“Sega Sammy has these sources and GAN is a strategic complement to their present gaming portfolio. We consider this all-cash provide, at a considerable premium to latest buying and selling costs, is the value-maximizing path for our shareholders,” Mr McGill mentioned.Shareholders are anticipated to be requested to approve the deal at a normal assembly to be held no later than March 31, 2024.The firm mentioned it expects the merger to shut through the fourth quarter of 2024.

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