Bally’s Corporation has agreed a deal to sell its international interactive business to Athens-listed Intralot.
The transaction values the online business at an enterprise value of €2.7 billion, with Bally’s set to receive €1.530bn in cash consideration and €1.136bn of newly issued shares in Intralot at an implied value of €1.30 per share.
Bally’s is Intralot’s largest shareholder and the transaction will make the company Intralot’s majority shareholder, with Bally’s CEO Robeson Reeves set to assume the role of Intralot CEO upon completion of the transaction.
Intralot’s current CEO, Nikolaos Nikolakopoulos, is expected to serve as president and CEO of the Lotteries division of Intralot, and Chrysostomos Sfatos, Intralot’s current group deputy CEO, is expected to serve as Intralot’s CFO.
“The transaction we announced today marks a doubly important day: On the one hand, for Intralot, which is growing with the acquisition of the online division of Bally’s International Interactive, creating a company with significant multiples in operating profits and unlimited space to expand into online gaming,” said Intralot founder and chairman Sokratis Kokkalis.
“On the other hand, for Greece and the Greek stock exchange, where a strong large-cap company is being created with the prospect of attracting significant foreign capital, helping to establish the country as a reliable investment destination. It is also a special day for me personally to see the company I founded 33 years ago in Greece and which has become one of the top three companies in the lottery technology industry worldwide through its technology innovation and dynamism, acquiring new vision and prospects. Finally, I would like to thank Mr. Kim for his commitment to our partnership.”
Soohyung Kim, chairman of Bally’s and vice chairman of Intralot, commented: “This is a tremendous statement of intent that signals Bally’s strong commitment to establishing a global lottery and online gaming champion. By joining with Intralot, the resulting company will be anchored in Europe, and will have significantly greater financial scale from which to drive growth and compete on a global basis.”
The transaction is expected to close by the end of this year and will create a leading digital gaming operator and technology provider for lottery products, with the combined technology capabilities of the two companies set to enable Intralot to pursue new opportunities in gaming and lottery markets globally.
“This transaction marks a transformative moment for Bally’s as we unite our outstanding gaming and data technology with Intralot’s exceptional expertise in lottery,” said Bally’s CEO Robeson Reeves. “Together, we are creating a unique proposition that will pave the way for a new era of innovation and growth across the entire gaming spectrum.”
Shares in Bally’s Corporation (NYSE:BALY) gained 15.73 per cent to close at $11.11 per share in New York Tuesday, while shares in Intralot SA (ATH:INLOT) closed at €1.16 per share in Athens.