Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Online bookmaker Betway parent to go public in merger with acquisition firm

Sports & GeneralApr 25, 2021 10:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Milwaukee Bucks training ahead of the NBA Paris Game 2020

By Joshua Franklin

NEW YORK (Reuters) - Super Group, the parent company of online bookmaker Betway, said on Sunday it has agreed to go public through a merger with blank-check acquisition firm Sports Entertainment Acquisition Corp at a valuation of around $5 billion.

The deal comes as Betway, which has its roots in Europe, expands in the United States. Betway also said it has agreed to acquire Digital Gaming Corp, tapping the online sports betting and gaming market in 10 U.S. states.

"The company (Super Group) is projecting EBITDA in excess of $350 million in 2021, with continuous growth that is very healthy thereafter," Sports Entertainment Chairman Eric Grubman said in an interview. "Those numbers are without the U.S., which is not likely to produce high profits in the next couple of years. The U.S. currently is more about the investment than profit, and is one of many opportunities the company has."

Reuters had reported on Saturday that Super Group and Sports Entertainment were nearing an a deal to merge.

The merger values Super Group at $4.75 billion, not accounting for funds it will receive from Sports Entertainment in the deal. Sports Entertainment currently has around $450 million in trust. Its shareholders can either roll over their shares into the combined company or redeem the stock and get their money back.

Upon closing of the deal, which is dependant on a vote by Sports Entertainment shareholders, the combined company's stock would trade under the symbol "SGHC" on the New York Stock Exchange.

Special purpose acquisition companies (SPACs) such as Sports Entertainment are shell companies that raise funds in an initial public offering with the aim of merging with a private company, which becomes public as result, providing an alternative to traditional IPOs.

SPAC dealmaking tailed off in recent weeks following a record start to 2021 as U.S. regulators changed the accounting requirements for them and investors have been less willing to bankroll mergers.

Betway's platform enables betting on popular sporting events around the world, including Britain's Premier League football tournament and the cricket tournament Indian Premier League.

"We have our own software and software from third parties, on which we overlay our data analytics engine. Data has been at the core of our DNA," Super Group Chief Executive Neal Menashe said. "It's all about return on investment, return on marketing spend, and engaging customers in an entertainment environment in a safe, secure and responsible way."

Super Group has partnerships with National Basketball Association teams such as the Chicago Bulls, Golden State Warriors, Brooklyn Nets and Los Angeles Clippers, and English football teams such as West Ham United.

Sports Entertainment Acquisition completed its IPO in New York in October. It is backed by Timothy Goodell, general counsel of U.S. oil producer Hess Corp (NYSE:HES) and brother of NFL commissioner Roger Goodell, and an affiliate of investment bank PJT Partners (NYSE:PJT) Inc.

Online bookmaker Betway parent to go public in merger with acquisition firm
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email