IRVINE, Calif. - GAN Limited (NASDAQ: GAN), a prominent B2B provider of internet gaming solutions in North America and an international B2C sports betting operator, has received the Nevada Gaming Commission's approval for its merger with a subsidiary of SEGA SAMMY CREATION INC. The transaction is on schedule to be finalized between late 2024 and early 2025, pending further customary closing conditions and additional gaming regulatory approvals.
Once the merger is completed, GAN's ordinary shares will be delisted from the Nasdaq Capital Market as the company transitions out of public trading. Shareholders will receive $1.97 in cash for each ordinary share they hold, subject to applicable taxes and without interest. The merger will result in GAN ceasing to be a publicly traded entity.
GAN is recognized for its internet gaming enterprise software system, GameSTACK™, which it provides to land-based casino operators. The company also operates Coolbet, a leading online sports betting technology in selected European and Latin American markets. SEGA SAMMY HOLDINGS, the parent company of the merging subsidiary, is involved in a diverse range of entertainment businesses, including consumer and arcade games, toys, and animation, as well as the development and distribution of Pachinko/Pachislot machines and casino gaming products.
The forward-looking statements in the press release indicate expectations for the merger's completion and future events, which are subject to risks and uncertainties. Factors that could influence the outcome include the satisfaction of merger conditions and regulatory approvals. GAN has stated it will not publicly update these forward-looking statements except as legally required.
This news is based on a press release statement and reflects the ongoing developments in the gaming and betting technology market.
InvestingPro Insights
As GAN Limited (NASDAQ: GAN) approaches its merger with SEGA SAMMY CREATION INC., recent financial data and market trends provide additional context to this significant corporate move.
According to InvestingPro data, GAN's market capitalization stands at $80.03 million, reflecting its current position in the gaming solutions market. The company's revenue for the last twelve months as of Q2 2024 was $126.74 million, with a notable gross profit margin of 69.53%. This impressive margin, highlighted as an InvestingPro Tip, underscores GAN's efficiency in its core operations, which could be an attractive feature for SEGA SAMMY.
Interestingly, GAN's stock has shown a strong performance, with a 60% price total return over the past year. This aligns with another InvestingPro Tip indicating a large price uptick over the last six months, suggesting investor optimism about the company's prospects, possibly influenced by the pending merger.
It's worth noting that the agreed-upon merger price of $1.97 per share closely aligns with the fair value based on analyst targets, as reported by InvestingPro. This alignment may provide shareholders with confidence in the deal's valuation.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for GAN, providing a deeper understanding of the company's financial health and market position as it prepares for this transformative merger.
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