The boards of Bally’s Corporation and Gamesys Group have agreed terms on a merger that would see Bally’s acquire Gamesys for £2bn ($2.74bn/€2.31bn).
The deal – which both boards said would help the combined business capitalise on the growing US market – would see Bally’s pay £18.50 per Gamesys share, representing a 12.7% premium on Gamesys’ closing share price yesterday (23 March).
Alternatively, its shareholders may exchange their holding for 0.343 newly issued Bally’s shares per Gamesys share. Bally’s shares were trading at $66.34 per share at market close in New York yesterday, meaning 0.343 shares would be worth £16.55 at the day’s exchange rate.
The founders and executives of Gamesys have already agreed to choose the share offer if the deal goes through. This means the maximum amount of cash that may be paid in the deal is £1.6bn.
Lee Fenton, currently chief executive of Gamesys, would become chief executive of the combined group, and two further Gamesys directors would join its board.