Nevada approval edges Sega Sammy closer to GAN acquisition
Confirmed yesterday (9 October) by the Nevada regulator, this follows initial approval from the Nevada Gaming Control Board in September. GAN detailed the news in a statement.
The deal remains subject to other customary closing conditions, including further regulatory approvals. However, both Sega Sammy and GAN are still confident the acquisition will close in late 2024 or early next year.
Approval in Nevada comes almost 12 months after the deal was announced. Sega Sammy in November last year agreed to acquire GAN for approximately $107.6m (£82.3m/€98.4m).
Under the terms of the deal, Sega Sammy will pay $1.97 for each share in the online gambling solutions provider. Should the acquisition close, GAN will cease to be a publicly traded company and ordinary shares will delist from Nasdaq.
Why is Sega Sammy acquiring GAN?
Sega Sammy, the Japan-based gaming heavyweight created by the merger of Sega and Sammy Corporation, says the acquisition will help expand its gaming business and wider gaming portfolio.
The business already operates an integrated resort through Paradise City in Japan. It also supplies gaming equipment and content through its Sega Sammy Creation (SSC) arm.
SSC, which produces slots and other gaming content, also purchased online game creator Stakelogic for $143.2m. The deal went through in July of this year.
Speaking last month, SSC CEO and president Naoki Kameda highlighted GAN’s relationship with Station Casinos and its STN Sports. He also spoke about the potential pursuit of other deals with land-based casinos in the area.
“We’d like to be a partner of land-based casinos so that we can expand our online platform together,” Kameda said. A deal with Fontainebleau Las Vegas is currently in the works, he also revealed.
Kameda also made reference to social gaming, saying this is “a very big opportunity” for SSC.