In terms of acquisitions, it doesn’t get bigger than this one. In fact, the new deal between JPJ and Gamesys stands out from the many we’ve read about recently. And why, well because nowadays it seems that it’s mostly low to mid-range performing operators or developers that merge. But in this case, Gamesys has played in the major league for a while. And let’s not forget to mention they also have an exceptional reputation in the industry too.
So, the latest development by the JPJ group took the industry by storm. And for a few reasons, but mostly because Gamesys didn’t have any financial difficulties, or struggled. But perhaps the Vera&John parent company is proving that to win the market leader race, one needs to bank on a good horse, and Gamesys seems to fit the bill. At least on paper…
While the deal is surprising, it’s important to point out that it’s not a takeover. In fact, the JPJ Group is only buying a part of the business. And they’re doing that to get better control of the casino market, not the sports and bingo one.
Indeed, the current deal only affects content and trademark from Virgin Casino, Heart Bingo, and Monopoly Casino to name a few. And brands and product owned by Gamesys like Livescore sports data and media business are not part of the transaction. Plus, the deal also excludes non-bingo suppliers and game studios. And the best of all is that the new corporate identity will also keep some of its founding roots. And will go by the name Gamesys Group Plc.
All and all, JPJ will fork out Millions to gain control of the company. First, they’ve put up £250 Million in cash. Which £175 Million came from JPJ’s existing debt facilities. Second, they’re also releasing 33.7 million new shares. And essentially this gave them around £240 Million.
According to Lee Fenton’s Gamesys CEO, the transaction is beneficial for all. Plus, he also foresees the company expanding in the current market they lead in, as stated in a recent press release. “The Enlarged Group’s combined brand portfolio, aligned operating structure, technology capabilities, and exceptional combined talent base will create significant opportunities for growth in the market.”