In a move that claims to immediately establish its U.S. operational footprint and lay the groundwork for the company's growth strategy in the region, Bragg Gaming Group (TSXV: BRAG) will reportedly acquire Nevada-based interactive software developer and distributor Spin Games LLC for approximately $ 30 million transactions cash and shares.
Announced Wednesday, May 11th, 2021, terms of the final agreement include receipt by the Reno-based company $ 10 million cash payments next to $ 20 million in common Bragg shares , of which $ 5 million is to be issued after closing the deal, is subject to regulatory approval and the balance paid over the next three years.
Bragg Gaming Group CEO Richard Carter explained in a press release that “Spin has state gaming licenses and well-established integrations with online casino operators covering most of the US market place our company in a unique position for future growth in the North American market. "
The deal, Carter said, "provides a solid foundation for our strategy of building a vertically integrated Level 1 iGaming business in the US."
The Spin Games (RGS) remote game server and casino content are fully licensed and distributed in Michigan, Pennsylvania and New Jersey, and a distribution license is pending in Canada's westernmost province, British Columbia. Established in Reno, Nevada in 2012, the company's portfolio includes over 150 interactive games including slot machines, bingo, video poker, virtual sports games, keno and "pre-built content concepts". It also has content and RGS licensing agreements with industry-leading content providers, including a designer, developer and producer of entertainment products from Illinois, Incredible Tecnologies, Inc, Everi, and Konami Gaming.
The merger agreement is in line with the previously announced strategy of the global provider of B2B gaming platform to diversify revenues from European regulated markets and increase business in the US, trying to take advantage of the rapidly growing online casino markets in the United States and Canada.
Lead operator access :
Courtesy of the transaction, an international gaming technology company is gaining access to "Relationships with key strategic operators" in the US, including WynnBet, Unibet, TwinSpires, Rush Street Interactive, Resorts, Penn National Gaming, Parx, Hard Rock, Golden Nugget, Caesars, BetMGM / Roar Digital and two of the country's largest fantasy sports companies North America, DraftKings, and FanDuel.
Bragg says his intention is to use the aforementioned key operator relationship to sell his existing casino content which is currently available in European markets while continuing to develop "US focused content creation".
A new role for young people:
Spin Games founder and CEO, Kent Young, who has over three decades of experience in managing the gaming sector, will immediately join Bragg Gaming Group as President - America. There will be " play a key role ”In managing the group's development strategy on the American market.
Young said ...
“On behalf of the entire Spin team, we are pleased to announce this acquisition, which will put the combined company in a better position to extend support to the fast-growing US iGaming market with our proprietary third-party content and content, and our leading remote game server technology.
Profitable move :
“Since becoming one of the first RGS and iGaming content companies approved for online gaming in the US, we've expanded our presence in New Jersey, Pennsylvania and Michigan and have been granted British Columbia business approval. In addition to strengthening our support to our existing customers and markets, this is an acquisition will accelerate Spin's ability to expand our content library, capture new markets and use our technology to support iGaming here and in new markets as they open . We are very excited to join the Bragg team and look forward to a very successful future together. "
The deal will close upon final approval from state gaming regulators and meeting other customary closing conditions.