Super Group, the parent company of world-wide online sports betting operator Betway, is meeting with special purpose acquisition fellowship (SPAC) Sports Entertainment Acquisition Corp. (NYSE:SEAH) inward a dealings with a pre-equity valuation of $4.75 billion.
As section of its plans to capitalize on the speedy maturation of regulated sports wagering in the US, Super Group also said it’s acquiring Digital Gaming Corp. (DGC). Super Group didn’t say how often it’s paying for DGC. The blank-check deal is slated to closely inward the indorse half of 2021 and next completion, the gaming manipulator will hold to lean its shares on the New York Stock Exchange below the stock ticker “SGHC.”
The combination with SEAH testament give Super Group access to the capital letter markets and a warm political platform to speed up its global maturation strategy, as swell as enlargement into the fast-growing U.S. online sports betting and gaming market,” according to a financial statement issued past the companies.
Sports Entertainment Acquisition raised $400 one thousand thousand in its initial public offering (IPO) utmost October. The SPAC is go by Timothy Goodell, the blood brother of NFL Commissioner Roger Goodell, and a building block of investiture camber PJT Partners Inc.
While the rumor grinder remains active, the Super Group/Sports Entertainment Acquisition announcement is the first off inward several months of 'tween a gaming entity and a SPAC next snow flurry of such activity lowest year. Several deals gaming operators and blank-check companies have closed since the protrude of 2021.
Internet Gaming, Sports Betting Win Again
At a pre-equity valuation of $4.75 billion, Super Group’s merger with Sports Entertainment represents i of the largest combinations to appointment 'tween a SPAC and a gaming company.
It’s also the a la mode(p) signalise that iGaming and online sports wagering are where expected growth is inward the gaming manufacture – a trait analysts and investors are prioritizing. Goldman Sachs late calculate the US online casinos and sports betting markets could follow worth $39 1000000000000 and $14 billion, respectively, in 2033. For its part, Super Group, citing H2 Capital says the global online betting and gaming market could top off $100 one million million inwards 2025.
The Betway social unit is sounding to capitalise on that growth. That operator entered the US before this year, taking its number 1 bet cobbler's last month. The acquisition of DGC brings added marketplace access of upwardly to 10 states, including Colorado, Indiana, Iowa, New island of Jersey and Pennsylvania, and that could live applicable to both iGaming and sports wagering, according to the company.
Malta-based Betway has to a greater extent than 60 firebrand agreements with athletes, leagues and teams around the world. In the US, such accords include the NBA’s Brooklyn Nets, Windy City Bulls, Golden State Warriors and the Los Angeles Clippers.
Impressive Financials
While some companies, including gaming firms, scuffle following SPAC mergers due to what markets perceive as trembling financials, Super Group is touting its outlook.
The operator calculate $1.5 one million million of net gaming revenue (NGR) this year with earnings before interest, taxes, wear and tear and amortisation (EBITDA) of $350 jillion with those figures expected to swell up to $1.7 one thousand million and $420 million, respectively, next year.
Following gag rule of the sell with Sports Entertainment, Super Group will hold $200 zillion in cash on its equilibrize piece of paper and no debt.
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