Sega Sammy Holdings Acquires GAN Limited in Mega Deal

Sega Sammy Holdings is making waves in the gaming industry as it enters a definitive agreement to acquire GAN Limited. The acquisition, which is scheduled to conclude by the third quarter of the fiscal year ending in March 2025, is part of Sega Sammy's ambitious investment strategy. They plan to invest up to ¥250 billion, with a significant ¥100 billion earmarked for the gaming business.

Sega Sammy Holdings conducted a thorough assessment of investment opportunities in online casino sports betting, with a focus on the rapidly expanding US market. It became evident that acquiring GAN Limited, a SaaS supplier for casino operators in the US and a Business-to-Consumer online gaming operator in Europe and South America, was a strategic choice.

The acquisition was agreed upon during a board of directors meeting held on November 8. The procedure will be executed through SSC's newly established special purpose company (SPC) in Bermuda, with GAN and SSC entering into a "definitive agreement" on the same day.

This amicable acquisition has received the full support of GAN's board of directors, and the official closing date is anticipated during the third quarter of the fiscal year ending March 2025. However, it still requires approval from GAN's shareholders and various regulatory approvals, as well as meeting customary requirements.

Sega Sammy Holdings emphasized that this acquisition aligns perfectly with their growth strategy. They anticipate that GAN's "highly competitive" turnkey technology solution, which enables operators to swiftly enter the online gaming market, will contribute significantly to the expansion of their gaming business.

The complementary nature of GAN's market-leading online gaming technologies and solutions, combined with SSC's extensive customer database and content development capabilities, is expected to result in increased distribution of SSC's compelling casino content and expanded customer reach.

Under the terms of the deal, GAN will be acquired at a cost of $1.97 per share. GAN shareholders will receive 100% of the consideration from SSC in cash, in exchange for cancelling their shares. The merger between the SPC and GAN will transform GAN into the surviving corporation, with the SPC's shares becoming GAN shares.

This strategic move by Sega Sammy Holdings is set to reshape the gaming industry and strengthen their presence in key markets.