iGaming solutions provider GAN will look to raise up to $105.3m from an upsized follow-on public offering to fund its acquisition of Coolbet parent Vincent Group.
The $149m deal for the operator, which is active in Estonia, Malta and Sweden, was announced in November, with GAN saying at the time that it would be funded through a combination of cash and stock.
It will now look to raise cash the cash portion of the purchase price by selling a maximum of 6,238,658 shares of common stock, priced at $15.50 per share.
This will see 5,855,158 shares sold by GAN, with a further 383,500 to be sold by the business’ shareholders. This is expected to generate gross proceeds of $90.8m for the business.
B. Riley Securities, which is acting as the sole book-running manager for the offering, will have the option to sell a further 935,798 ordinary share to cover over-allotments, at the public offering price minus underwriting discounts and commissions. If this is all sold, it will take the total raised to $105.3m.
The offering is expected to close on December 21, subject to customary closing conditions.
Any money remaining from the offering after the Coolbet consideration is paid will be used for working capital and general corporate purposes, such as sales and marketing activities, product development and capital expenditures.
Once the acquisition closes, GAN plans to integrate Coolbet’s proprietary sportsbook technology into its B2B offering, and expects to make the solution available to clients in the second half of 2021. The deal will also significantly increase GAN’s employee headcount, with more than 175 staff joining the business.