GAN Announces CFIUS Clearance for SEGA SAMMY Merger
GAN (NASDAQ: GAN), a premier B2B tech provider for real money internet gaming, has secured clearance from the Committee on Foreign Investment in the United States (CFIUS) for its planned merger with a subsidiary of SEGA SAMMY CREATION. The merger, pending approval from relevant gaming authorities and other customary conditions, is anticipated to finalize in late 2024 or early 2025. Upon completion, GAN shareholders will receive $1.97 per share, and GAN will be delisted from NASDAQ, ceasing to be publicly-traded. The merger aligns with GAN's strategic objectives to leverage SEGA SAMMY's global reach and expertise in gaming and entertainment.
- CFIUS clearance for GAN's merger with SEGA SAMMY.
- GAN shareholders to receive $1.97 per share upon merger completion.
- Potential strategic synergies from combining GAN's internet gaming solutions with SEGA SAMMY's global market presence.
- GAN will cease to be a publicly-traded company and its shares will be delisted from NASDAQ.
Insights
The clearance from the Committee on Foreign Investment in the United States (CFIUS) for the proposed merger between GAN and a subsidiary of SEGA SAMMY HOLDINGS is a significant milestone. The most immediate implication for investors is that each GAN ordinary share will be converted into
In the long-term, GAN's delisting from Nasdaq means reduced liquidity and visibility, which could be a drawback for the current shareholders who might prefer to hold public company shares. Moreover, the merger effectively means the end of public trading for GAN, limiting future public investment opportunities in this firm. On the other hand, SEGA SAMMY's backing can bring substantial strategic advantages and synergies, particularly in expanding market reach and technological capabilities, which may benefit stakeholders indirectly through improved business operations.
CFIUS clearance for the merger suggests that there are no national security concerns with the transaction, which can be a positive signal to the market. The alignment of GAN with SEGA SAMMY HOLDINGS merges GAN's proprietary online gaming technology with SEGA's extensive expertise and market presence in gaming products. This combination could potentially create a dominant player in the Internet and land-based gaming sectors.
For current shareholders, understanding the strategic rationale is key. Mergers typically aim to create value through cost synergies and expanded market reach. The merger's impact on GAN's existing operations and market presence could initially be disruptive, but in the longer term, the integration with SEGA SAMMY could result in enhanced product offerings and market expansion. The challenges lie in the execution of the merger and alignment of business cultures.
The closing of the merger is also subject to approval of the merger and change in control of GAN by certain gaming authorities. The closing of the merger remains subject to other customary closing conditions, and is expected to occur in late 2024 or early 2025.
If the merger is completed, each GAN ordinary share issued immediately prior to the effective time of the merger will be automatically cancelled and converted into the right to receive
About GAN
GAN is a leading business-to-business supplier of internet gaming software-as-a-service solutions predominantly to the
About SEGA SAMMY HOLDINGS
SEGA SAMMY HOLDINGS is the holding company of the SEGA SAMMY Group, a group of companies comprising the Entertainment Contents Business, which offers a diversity of fun through consumer and arcade game content, toys and animation; the Pachislot and Pachinko Machines Business, which conducts everything from development to sales of Pachinko/Pachislot machines; and the Gaming Business, which operates integrated resorts and develops casino gaming products and software.
SSC is a wholly-owned subsidiary of SEGA SAMMY HOLDINGS. SSC, together with its wholly-owned subsidiary SEGA SAMMY CREATION
Forward-Looking Statements
This press release contains “forward looking statements” regarding the closing of the merger and the expected timing thereof and other future related events. Such statements are based upon current estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Factors that could cause actual events to differ include, but are not limited to the failure to satisfy the closing conditions to the merger, including obtaining the approval of the merger and change in control of GAN by certain gaming authorities and other risks detailed in GAN’s filings with the SEC, including its proxy statement filed with the SEC on January 9, 2024. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. GAN undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240627063362/en/
Investor Contacts:
GAN
Robert Shore
Vice President, IR and Capital Markets
(610) 812-3519
rshore@GAN.com
Alpha IR Group
Ryan Coleman
(312) 445-2870
GAN@alpha-ir.com
Source: GAN Limited
FAQ
What is the value per share GAN shareholders will receive in the SEGA SAMMY merger?
When is the GAN and SEGA SAMMY merger expected to close?
Has GAN received any regulatory clearances for the merger with SEGA SAMMY?
What will happen to GAN's NASDAQ listing after the merger with SEGA SAMMY?
What are the remaining conditions for the GAN and SEGA SAMMY merger?
