13th Jun 2019 10:19
(Alliance News) - Gaming firm JPJ Group PLC is to rebrand once again as it announces the GBP490 million acquisition of Gamesys Holdings Ltd.
JPJ, which was called Jackpotjoy until a year ago, is to pay GBP250 million in cash for Gamesys as well as GBP240 million in new shares. Following the deal, which excludes Gamesys's sports brands and games, the enlarged company will be renamed Gamesys Group PLC.
The cash element will be funded by JPJ extending existing debt.
Gamesys is a developer of platform software and bingo games for real money online gaming websites and apps, and has operations in the UK, Gibraltar, Spain, and the US state of New Jersey.
This is not the first transaction between the two firms. In April 2015, before JPJ was listed on the London Stock Exchange, Gamesys sold the Jackpotjoy brand to what was then Intertain Group Ltd.
Gamesys shareholders will own 31% of the enlarged Gamesys group, which will be eligible to join the FTSE index.
Current Gamesys Chief Executive Lee Fenton will become the new enlarged group CEO, while Gamesys Chief Operating Officer will become COO of the enlarged company. JPJ's Executive Chair Neil Goulden and Chief Financial Officer Keith Laslop will remain in their roles.
Goulden commented: "This acquisition marks an important transformational step in JPJ's growth, providing significant benefits for shareholders, employees and customers. For shareholders, we expect the acquisition to deliver earnings accretion in the first full financial year of ownership, while our employees will benefit from the combination of two companies with a strong commitment to responsible gaming and where the greater scale will further enhance our product development and technology capabilities.
"Our customers will also now have an even greater choice of major brands and different games, all on one platform, creating a truly leading UK and international operator. The rationale for the acquisition of Gamesys is based on growth and both teams, at JPJ and our new colleagues joining us from Gamesys, are excited and motivated by the great opportunity which lies ahead."
JPJ shares were 5.1% higher on Thursday morning at a price of 808.00 pence each, giving it a market capitalisation of GBP601.8 million.
Related Shares:
JPJ.L