In a major development within the gaming industry, Japanese entertainment giant Sega Sammy Creation (SSC) is set to acquire GAN Ltd, a leading provider of enterprise solutions for online casino gaming, for a staggering $84.4 million. The announcement sent GAN’s stock soaring, marking a significant upturn in its market value.
At the time of this publication, Gan Ltd stock (GAN) has witnessed a surge.
Gan Ltd
Current Price: $1.65
Change : +0.76
Change (%): (85.01%)
Volume: 11.3M
Source: Tomorrow Events Market Data
As per the Merger Agreement, upon completion of the merger, each of GAN’s issued ordinary shares will be converted into a cash value of $1.97 per share. This represents a remarkable 121% premium over the closing price of GAN’s ordinary shares on November 7, 2023, the day before the announcement was made. GAN stock closed at $0.89 and opened at $1.74, reflecting the positive market sentiment surrounding the acquisition.
Sega Sammy Creation, a subsidiary of Sega Sammy Holdings, Inc., a global conglomerate with interests in entertainment, gaming, and resort businesses, has positioned itself to make this strategic move into the sports betting technology sphere.
GAN’s Chairman and Interim Chief Executive Officer, Seamus McGill, expressed his assessment of the current industry landscape, noting challenges arising from market share concentration and slower-than-expected adoption of regulated online gaming in the U.S. McGill emphasized the significance of having ample capital resources to navigate these obstacles effectively. With the acquisition, GAN stands to benefit from Sega Sammy’s robust financial backing, providing a bolstered foundation for future growth.
The merger agreement will be subject to approval by GAN shareholders, who will convene for a special meeting scheduled to take place by March 31, 2024. The acquisition is anticipated to culminate in the fourth quarter of 2024, at which point GAN will operate as a wholly-owned subsidiary of SSC.
Chairman McGill expressed confidence in the value proposition presented by Sega Sammy’s all-cash offer, citing it as the optimal means to maximize shareholder value. The acquisition not only represents a significant financial windfall for GAN shareholders but also positions the company for enhanced opportunities within the dynamic gaming industry.
This acquisition marks a pivotal moment for both GAN Ltd and Sega Sammy Creation, with the latter diversifying its portfolio and entering the sports betting technology sector. As the merger progresses, stakeholders will be keenly observing the subsequent developments and the impact this strategic move will have on the broader gaming landscape.
