Super Group, the holding company for online sports betting and gaming operator Betway, is set to merge with special purpose acquisition company Sports Entertainment Acquisition Corp. (SEAH) to go public on the New York Stock Exchange.
This is the latest SPAC tie-up announced over the past year within the gambling industry as companies seek better foothold in the fast-expanding US sports betting field.
As mentioned above, Super Group is parent to Betway, a major player in Europe’s digital wagering space, but it also owns Spin, a multi-brand online casino specialist. The group is licensed in 23 territories across Europe, Africa, and the Americas.
It took more than $42 billion in wagers in the 12 months to March 2021 and has over 2.5 million monthly unique active customers.
Super Group has also recently entered into an agreement to acquire online gambling solutions provider Digital Gaming Corporation in a move that will give it initial access to 10 US states. That transaction is subject to customary regulatory closing conditions.
Online gambling’s popularity has surged globally over the past 12 months as it has been boosted by government-mandated lockdowns aiming to curb the spread of the coronavirus. In the US, the growth of the industry has further been facilitated by the legalization of sports betting and iGaming in multiple states.
As a result many European companies have tapped into or been looking for ways to tap into the local market, with Betway and its parent organization clearly being the latest.
In a Sunday statement, Super Group said that following its merger with SEAH, the combined group will apply to list its shares on the New York Stock Exchange under the ticker symbol SGHC and will operate under the name Super Group.
Betway’s owner further noted that SEAH has agreed on the combination based on a $4.75 billion pre-money equity valuation. The transaction, once closed, is expected to deliver around $450 million of cash to the combined business. The money is currently held in trust.
Existing Super Group shareholders will hold approximately 88% of the combined group’s shares upon closing. And the group will have approximately $200 million in cash on its balance sheet once the deal closes.
The merger is subject to approval from SEAH shareholders as well as to other customary closing conditions. It is expected to be finalized in the second half of the year.
This is the fourth SPAC merger involving a gambling company announced in the past year. Last April, US sports betting and daily fantasy sports operator DraftKings merged with Diamond Eagle Acquisition Corp.
And in late December, Tilman Fertitta’s Golden Nugget Online Gaming combined with Landcadia Holdings II, Inc., while Rush Street Interactive closed its SPAC tie-up with dMY Technology Group.
Gambling bosses see a combination with blank-check companies as a quick way to get their companies to market with a potentially bigger fund raise and reduced complexity, particularly when compared to the traditional IPO process.
Source: Super Group to Combine with Sports Entertainment Acquisition Corp. to Create NYSE-Listed Global Gaming Company, BusinessWire, April 25, 2021