GAN Amends Merger Agreement with Sega Sammy to Extend Finalization by Mid-2025
Deal News | Feb 12, 2025 | EIN
GAN, a provider of online gambling technology, has amended its merger agreement with Sega Sammy to extend the final deadline for the acquisition to May 31, 2025. Originally planned for completion by the end of 2024, the extension is to allow more time for regulatory approvals. The deal terms include Sega Sammy acquiring GAN for approximately $107.6 million, at $1.97 per share. Key approvals have been achieved, such as the Nevada Gaming Commission's clearance, yet final regulatory procedures are ongoing. Once approved, GAN will merge with Sega Sammy Creation, a subsidiary of Sega Sammy Holdings, making it no longer publicly traded. This acquisition aligns with Sega Sammy's strategy to expand its gaming portfolio in North America, offering GAN the financial backing to overcome regional challenges. GAN's CEO, Seamus McGill, noted that the merger, priced at a premium to recent trading prices, will yield substantial value for shareholders.
Sectors
- Gaming and Casinos
- Mergers & Acquisitions
Geography
- United States – GAN and Sega Sammy are focusing on the U.S. market expansion, particularly noting regulatory approvals and gaming market opportunities in North America.
- Japan – Sega Sammy is a Japanese holding company, which plays a crucial role in the merger involving GAN.
Industry
- Gaming and Casinos – Both GAN and Sega Sammy operate in the gaming industry. GAN provides online gambling technology, while Sega Sammy specializes in gaming technology for casinos.
- Mergers & Acquisitions – The article discusses the merger agreement between GAN and Sega Sammy, focusing on the extension of the acquisition completion timeline.
Financials
- $107.6 million – The agreed purchase price for the acquisition of GAN by Sega Sammy.
- $1.97 per share – Stock purchase price offered by Sega Sammy for GAN's shares.
- $143.2 million – Amount Sega Sammy paid to acquire online game developer Stakelogic in July 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| GAN | Target Company | Company | A provider of online gambling technology solutions, set to be acquired by Sega Sammy. |
| Sega Sammy | Bidding Company | Company | A Japanese holding company known for its involvement in the gaming industry, acquiring GAN to enhance its North American presence. |
| Seamus McGill | CEO of GAN | Person | CEO involved in guiding GAN through the merger process with Sega Sammy. |
| Sega Sammy Creation (SSC) | Other Company | Subsidiary | A subsidiary of Sega Sammy Holdings specializing in gaming technology for casinos, merging with GAN. |