Bragg Gaming acquires Spin Games for $30m12th May 2021 3:55 pm GMT
Toronto-listed Bragg Gaming Group has entered into a definitive agreement to acquire Nevada-based gaming supplier Spin Games in a cash and stock deal worth US$30m.
Accelerating its entry into the North American iGaming market, Bragg will pay $10m in cash to acquire Spin, alongside the issue $20m in common shares of Bragg, of which $5m will be issued on closing and the balance over the next three years.
Spin currently has a team of more than 30 staff and will provide Bragg with immediate technical, product, regulatory and compliance know-how specific to the US market.
Spin’s remote gaming server and casino content are fully licensed and distributed in New Jersey, Pennsylvania and Michigan, and is licensed with deployment pending in British Columbia, Canada. Its partners include leading operators such as BetMGM, Caesars, FanDuel, Golden Nugget, Hard Rock, DraftKings, TwinSpires, Penn National Gaming, Resorts, Parx, Rush Street Interactive, Unibet and WynnBet.
“Spin’s existing state gaming licenses and established integrations with online casino operators, comprising the majority of the US market uniquely positions our Company for future growth in the North American market,” said Bragg Gaming CEO Richard Carter. “This transaction lays a strong foundation for our strategy of building a tier one vertically integrated iGaming business in the US.
“We have seen from the European market that the ability to deliver best-in-class proprietary content alongside a full turnkey iGaming and player management platform is key to building a successful B2B online casino technology provider. The cornerstone of our future growth strategy will involve bringing best-in-class content in-house during the early innings of the US growth story to position our company for long-term success.
Carter said that the deal would be transformative for the company, providing significant positive impact for employees, customers, and shareholders.
“Spin’s outstanding product and talented team instantly expands our local market footprint and brings a wealth of US market know-how to the group, including valuable product, technical, regulatory and compliance expertise,” he continued.
“We welcome Kent and the whole team onboard and we look forward to combining Spin and Oryx capabilities to offer new full turnkey gaming solutions in the US and Canadian iGaming industries.”
Following closing, Spin’s founder and CEO Kent Young will join Bragg as president of Americas, and will play a key role in the company’s US market roll-out growth strategy.
“On behalf of the entire Spin team, we are pleased to announce this acquisition which will better position the combined company to expand its support of the rapidly growing US iGaming market with our proprietary and third-party content and our leading remote gaming server technology,” said Young. “Since we became one of the first RGS and iGaming content companies approved for online gaming in the US, we have grown our footprint in New Jersey, Pennsylvania and Michigan and been approved to operate in British Columbia.
“In addition to strengthening our support of our existing customers and markets, this acquisition will accelerate Spin’s ability to expand our content library, pursue new markets and leverage our technology to support iGaming here and in new markets as they open. We are extremely excited to be joining the Bragg team and look forward to a highly successful future together.”
The transaction is expected to close in late Q4 2021 subject to customary working capital adjustments, required regulatory approvals and other customary closing conditions.
Shares in Bragg Gaming Group Inc (TOR:BRAG) were trading up marginally by 0.69 per cent at CAD$17.70 per share in Toronto earlier Wednesday following the announcement.