Super Group, the parent company behind Betway, is to combine with Sports Entertainment Acquisition Corp (SEAH) to create an NYSE-listed global gaming company, through a SPAC deal that will value the holding company at $4.75 billion (£3.30 bn), and secure $450 million (£325million) in cash for the new combined entity.
The details
Super Group is the holding company of global online sports betting operator Betway and Spin, a multi-brand online casino offering. The firm is said to have reached a “definitive agreement” to go public through a merger with blank-check acquisition firm Sports Entertainment Acquisition Corp (SPAC) at a valuation of around $5 billion.
The deal is slated to close in the second half of 2021 and will see the combined company’s stock trade under the symbol “SGHC” on the NYSE and receive a cash injection of $450m in funds, which are currently held in trust.
Eric Grubman and John Collins are behind the SPAC, and Grubman is to become Super Group’s new chairman.
Targeting the fast-growing US market
Unequivocally, the deal is part of the company’s plans to capitalise on the rapid growth of regulated sports wagering in the US. Super Group CEO Neal Menashe notably underlined that Super Group would maintain Betway as its flagship brand across all markets including North America.
This news comes shortly after Super Group announced it had sealed a deal to acquire Digital Gaming Corporation, giving the group access to an initial 10 US. states. Super Group and Betway’s have multiple ties to sports companies, including partnerships with NBA teams as well as English Premier League club West Ham United.
Impressive Financials
Following closure of the deal with Sports Entertainment, Super Group will have $200 million in cash on its balance sheet and no debt.
Plus, according to Grubman, the operator forecasts $1.5 billion of net gaming revenue this year alone, with earnings before interest, taxes, depreciation, and amortization (EBITDA) of $350 million, with the expectation that those figures will swell to $1.7 billion and $420 million, respectively next year.
