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Betway - Parent Of Online Bookmaker Betway, To Get Listed Using SPAC

Betway - Parent Of Online Bookmaker Betway, To Get Listed Using SPAC
The parent company of online bookmaker Betway, Super Group, will go public at a valuation of about $5 billion through a process of merger with blank-check acquisition firm Sports Entertainment Acquisition Corp, the company said.
This move comes from the Europe based company at a time when it is looking to expand into the United States. The US firm Digital Gaming Corp will be acquired by Betway which will help it to tap into the online sports betting and gaming market in about 10 states in the US.
"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."
Reports that Super Group and Sports Entertainment were close to a deal to merge were published on Saturday.
Super Group was valued at $4.75 billion at the merger which did not include the effect the funds it was slated to receive from Sports Entertainment in the deal. Currently, $450 million in trust is owned by Sports Entertainment. Its shareholders can either roll over their shares into the combined company or redeem the stock and get their money back.
The combined company's stock would trade under the symbol "SGHC" on the New York Stock Exchange after eth closure of the deal. However a vote by Sports Entertainment shareholders will ultimately decide the fate of the deal.
Companies like Sports Entertainment are special purpose acquisition companies (SPACs) that raise funds in an initial public offering with the aim of merging with a private company which becomes a public company because of the merger. This is an alternative method to get listed in addition to the conventional method of issuing initial public offerings (IPO).
After a record start to 2021, going public through SPAC deals has reduced in recent weeks particularly because of change of the accounting requirements for them by US regulators which has made investors less willing to bankroll mergers.
The online platform of Betway allows users to bet on popular sporting events around the world which includes betting in 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."
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 all have partnerships with the Super Group.
The IPO of Sports Entertainment Acquisition was completed last October at the New York stock exchange.  Timothy Goodell, general counsel of U.S. oil producer Hess Corp and brother of NFL commissioner Roger Goodell, and an affiliate of investment bank PJT Partners Inc are backers of the company.

Christopher J. Mitchell

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