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Gamesys and JPJ Group Join Forces

The combined JPJ and Gamesys businesses will benefit from: (i) a diversified portfolio of leading consumer brands; (ii) greater operational control through proprietary technology; and (iii) a complementary executive and operational team. The coming together will result in a strategically aligned Enlarged Group with a strong financial profile set to compete in an evolving marketplace. The deal is expected to be completed in Q3 2019.

Key highlights

  • JPJ to acquire Gamesys, excluding sports brands and games, for a total valuation of c.£490 million, comprising: o £250 million in cash, of which £175 million is to be funded by an add-on to JPJ’s existing debt facilities; and o 33.7 million in newly issued shares, representing c.£240 million based on the 30-day volume weighted average price of JPJ
  • The Acquisition represents an estimated multiple of 7.3x Adjusted EBITDA for Gamesys for the 12 months ending December 2018
  • The Enlarged Group to be renamed Gamesys Group plc
  • Consideration shares to represent c.31% of the Enlarged Group, with customary lock ups from major selling shareholders
  • The Enlarged Group should qualify for inclusion in the FTSE 250

The main rationale for the deal was the increased financial benefits, power and development opportunities that bringing the two companies together would create. It will greatly diversify the portfolio and fill it with high-quality and market-leading content and licenses.

Increased scale also enhances player experience and profitability. Greater scale can lead to optimised marketing and campaign targeting, which increases player retention and wallet share opportunities and better positions the Company to respond to regulatory developments.

With the deal, the new Gamesys Group PLC reaffirms their commitment to responsible gambling. This enhanced scale means they can reach more people and promote far-reaching best-in-class responsible gambling tools through building long term and sustainable relationships with customers.

Lee Fenton, Chief Executive of Gamesys and proposed Chief Executive of the Enlarged Group (Gamesys Group PLC), commented:

“I am very excited to join the Enlarged Group as CEO. This is a strategically important transaction that adds scale and combines complementary capabilities as the competitive and regulatory environment continues to evolve. The Enlarged Group’s combined brand portfolio, strategically aligned operating structure, technology capabilities and exceptional combined talent base will create significant opportunities for growth in the market.”