Parent Company of Betway Agrees to $4.75 Billion SPAC Deal
Super Group, the parent company of sportsbook Betway and online casino offering Spin, has agreed to go public in a $4.75 billion deal with Sports Entertainment Acquisition Corp., a special purpose acquisition company (SPAC).
The combined company intends to apply to list its shares on the New York Stock Exchange under the new ticker symbol “SGHC,” according to a news release over the weekend. Upon closing of the transaction, expected in the second half of 2021, the combined company will operate under the name Super Group.
SPACs have no goods or services but have cash and are publicly traded companies. The blank check companies seek private companies to help take them public. Being public allows the previously privately owned company to generate funds.
The partnership with Sports Entertainment Acquisition Corp., which is led by former NFL Executive Vice President Eric Grubman and former NHL Chief Operating Officer John Collins, will allow Super Group and its Betway brand to increase its presence in the growing U.S. online sports betting and casino markets.
To emphasize the push into the U.S. market, Super Group has entered into an agreement to acquire Digital Gaming Corp., subject to regulatory approvals, the news release said. DGC has the exclusive right to use the Betway brand in the U.S. and has secured market access for online sports betting and gaming in 10 states, including Pennsylvania, New Jersey, Colorado, Indiana and Iowa. DGC’s first bet in the U.S. was taken in March.
“We have established our group as a truly global, scaled and profitable digital gaming business, delivering on our vision to bring first-class entertainment to the worldwide betting and gaming community,” Neal Menashe, chief executive officer of Super Group, said in a news release. “Becoming a public company will give us the tools to continue to grow our leading product and technology offering and deliver a strengthened brand-driven marketing strategy.
“This listing will position us strongly to capitalize on the significant global growth opportunities ahead — including in the U.S. market — enabling us to further expand our robust, loyal and engaged customer base.”
Betway has more than 60 brand partnerships with teams and leagues, including the NBA’s Cleveland Cavaliers, Chicago Bulls, Golden State Warriors, Brooklyn Nets and Los Angeles Clippers; and English Premier League team West Ham United, the release said. The deal with the Cavaliers was announced on March 26 and Ohio hasn’t legalized sports betting.
More about Super Group
In addition to Betway and Spin, Super Group, based in the UK, is the holding company for other global online sports betting and gaming businesses, the release said. The group is licensed in 23 jurisdictions, including key markets in Europe, the Americas and Africa.
Super Group says it took in more than $42 billion in wagers in the 12 months to March 2021 and currently has more than 2.5 million monthly unique active customers. The company, which will be debt-free and have approximately $200 million in cash on its balance sheet at closing, delivered $1.1 billion in net gaming revenue (NGR) and $259 million EBITDA in 2020.
”Super Group is an online gaming and betting powerhouse with a track record of global growth and a strong balance sheet,” Grubman said in the release. “Super Group’s core DNA is rooted in digital technology, which drives its unparalleled expertise in data and analytics.
”Neal and Super Group’s diverse and multi-talented global team have a great playbook for how to successfully launch and achieve profitable growth in new markets, and we look forward to partnering closely with them on this exciting next chapter as a public company.”
Sports Entertainment Acquisition Corp. has been focused on targets in the sports and entertainment sectors as well as the technology and services that are associated with these verticals, the release said.
More Companies Going SPAC Route
SPACs, also known as blank check companies, have become more common in recent years, especially in online gaming, gambling, hospitality and digital entertainment. Gaming companies such as DraftKings, Rush Street Interactive, Genius Sports Group and Golden Nugget Online all became publicly traded in SPAC deals in 2020 and early 2021.
In early March, Sportradar, the Swiss gambling data company, reached a reported $10 billion deal with a SPAC — Horizon Acquisition Corp. II — that would allow it become publicly traded. The special purpose acquisition company is headed by Los Angeles Dodgers co-owner Todd Boehly.
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