In a transfer that it says will instantly set up its U.S. working footprint and set the inspiration for the agency’s progress technique within the area, Bragg Gaming Group (TSXV:BRAG) will reportedly purchase Nevada-based interactive software developer and distributor Spin Games LLC in an roughly $30 million money and inventory transaction.
Announced Wednesday, May eleventh, 2021, phrases of the definitive settlement contains the Reno-headquartered agency receiving a $10 million money fee alongside $20 million in Bragg frequent shares, $5 million of that are to be issued upon closing of the deal, topic to regulatory approval, with the steadiness paid over the following three years.
Chief Executive Officer for Bragg Gaming Group, Richard Carter defined in a press release that “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.”
The transaction, stated Carter, “lays a strong foundation for our strategy of building a tier one vertically integrated iGaming business in the US.”
Spin Games‘ remote gaming server (RGS) along with its casino content are fully licensed and distributed in Michigan, Pennsylvania, and New Jersey, and is licensed with dispersal pending in Canada‘s westernmost province, British Columbia. Founded in Reno, Nevada in 2012, the firm’s portfolio contains greater than 150 interactive video games together with slots, bingo, video poker, digital sports activities video games, keno, and “out-of-the-box content material ideas. And has content material and RGS licensing agreements with industry-leading content material suppliers together with Illinois-based designer, developer and producer of leisure merchandise, Incredible Tecnologies, Inc, Everi, and Konami Gaming.
The merger settlement is in step with the worldwide B2B gaming know-how platform supplier’s beforehand introduced technique to diversify its income from European regulated markets and enhance its U.S. operations in an try and benefit from the quickly increasing on-line casino markets within the U.S and Canada.
Leading operator entry:
Courtesy of the transaction, the worldwide gaming know-how firm is to realize entry to “key strategic operator relationships” within the U.S. together with WynnBet, Unibet, TwinSpires, Rush Street Interactive, Resorts, Penn National Gaming, Parx, Hard Rock, Golden Nugget, Caesars, BetMGM/Roar Digital and the 2 largest fantasy sports activities corporations within the North American nation, DraftKings and FanDuel.
Bragg says its intention is to leverage the aforementioned key operator relationships in order that it might cross-sell its present casino content material that’s at present stay in European markets whereas persevering with the event of its “US-centric content creation.”
New position for Young:
Founder and Chief Executive Officer for Spin Games, Kent Young, who brings greater than three many years of gaming sector govt expertise, will instantly be a part of Bragg Gaming Group as President – Americas. There, he’ll “play a key role” in driving the group’s U.S. market roll-out technique.
“On behalf of the complete Spin workforce, we’re happy to announce this acquisition which can higher place the mixed firm to increase its assist of the quickly rising US iGaming market with our proprietary and third-party content material and our main distant gaming server know-how.
“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 will shut after last approval is obtained from state gaming regulators, and satisfaction of different customary closing circumstances.