Irvine-based GAN Limited, a provider of internet gaming solutions, agreed to sell itself in an all-cash deal to a subsidiary of Sega Sammy Holdings Inc., a conglomerate operating in the entertainment, gaming and resorts businesses.
Sega Sammy is paying $1.97 for each GAN ordinary share, a 121% premium over GAN’s closing price on Nov. 7.
GAN is asking shareholders to approve the agreement at a meeting no later than March 31. Investors exhibited some doubt the deal would close as shares rose 84% to $1.65 and a $75.5 million market cap. Volume was 48 times the daily average.
“Market share concentration in the U.S. B2C space, a slower than expected adoption of regulated online gaming in the U.S., along with changes to key customer contracts make the near-term operating environment challenging without ample capital resources,” Seamus McGill, chairman and interim chief executive of GAN, said in a statement.
Riley Securities Inc. served as GAN’s financial advisor throughout the strategic review process and Sheppard Mullin Richter & Hampton is serving as legal counsel.
