The first quarter of 2022 has witnessed a surge in merger and acquisition activity in the wonderful world of on the web gambling, but especially in the program development niche.
In what's being regarded as a major move in the industry, US company Bally Technologies has principally agreed a deal to acquire rival Gamesys in a deal that could value the former at £2 billion.
It's being seen as a deal that will make an important amount of sense for both parties, which would enable Gamesys to expand its reach into the ever-growing US market as more and more legislation gets approved.
The facts of the deal states that Bally’s would purchase each Gamesys share for £18. 50 which would begin to see the former get access to the expertise of their acquisition including both technological and organisational.
Interestingly, it will be Gamesys chief executive Lee Fenton - set to pocket £13. five million from the offer - who is going to lead the new organisation which provides a significant clue to Bally’s strategic plans, indicating that they perhaps need this deal more.
There are also implications that could spark a bidding war in the usa with many parties in the internet gambling industry scrambling to position themselves to point where they can gain substantial market share in the one of the world’s biggest economies.
Already we've seen the likes of Caesers acquire William Hill on the operator side which was a significant clue concerning where in fact the market was heading.
Bally’s chairman Soo Kim has demonstrably seen value in this deal and emphasised this would represent an amazing change and big progress for the organization in its goal to become leading US gaming company that offers both integrated and omni-channel services.
Kim also highlighted the potency of the management team that Gamesys has set up at all levels, that will help to reach their ambitions additionally to how this would allow them to substantially capitalise on the growth opportunities presented by the united states gaming and sports betting markets.
Who are Gamesys?
Launched in 2001 by three main shareholders; Noel Hayden, Andrew Dixon and Robin Tombs, a couple of pc software developers, despite nearly flying under the radar, they have quietly and impressively gone about their business over the last two decades.
Under their purview they've the major on line gambling brand, Jackpot Joy as well as a number of others, though their growth during the last 20 years has made them well respected in the industry.
Not only as an operator, but also a key developer of software, that may provide Bally’s with a considerable advantage over their rivals.
It is clear from the takeover, that Bally’s are keen on the expertise to drive its online assets, as has been made obvious from the recent M& A (merger and acquisition) activity in the US market recently.
What this could mean for Bally
With the usa on line gambling industry beginning to open up considerably, especially the brand new York market, this could be great timing for the company whose collective new base will be in Rhode Island.
Already positioned to make the most, they have usage of a large amount of potential revenue and their latest partnership can help to provide the expertise that is had a need to help them to compete with their rivals.