Rank Offers £115.3 Million for StrideTisha Walden | 10 Jun 2019
London listed Rank Group has completed an agreement for an all-cash offer to acquire Bingo and Casino operator Stride Gaming. The announcement comes shortly after the company confirmed that it was in talks with the casino operator, after much speculation.
According to the terms of the agreement, the operator has valued Stride Gaming’s share capital at £115.3 million. This figure represents a 29% premium on the share price of Stride stock, which was listed at 119 pence per share on the final day before the offer. It also represents a 48% premium on the average six-month price of stride share since February.
Speaking to the press, Rank Group Chief Executive John O'Reilly said that Stride Gaming is a hugely complimentary business to theirs, which is why they are pleased to make the offer for purchase. He said the company has long been impressed with the operations, quality and management of Stride. They believe that that the Rank Group can offer significant opportunities to create even larger value for infrastructure and customer base when the two companies combine. He went on to say that the joining of the two businesses would serve to accelerate the company’s plan to become one of the UK’s leading iGaming businesses.
Deal Includes Proprietary Software
Should the deal be accepted, the Rank Group said they would create a large-scale digital gaming business with net gaming revenues of approximately £185 million through digital mediums. The company also expects the acquisition to significantly improve their performance while reducing costs. Their aim is to migrate to Stride’s in-house ecosystem running through the company’s proprietary technology platform. They also plan to expand the management team with senior staff from Stride Gaming. The merging of technologies would also offer greater financial flexibility and stronger synergies within the industry.
It is expected that after the acquisition, Stride Gaming’s Darren Sims and Eitan Boyd, who currently fill the Chief Operating Officer and the Chief Executive Officer roles, will head up Rank Group’s new digital division. They will oversee the full migrations of Rank’s digital access to Stride’s proprietary platform.
About Stride Gaming
Stride was founded in 2012 and soon became a key operator behind major brands like Lucky VIP Casino, Aspers Casino, Spin and Win Casino, and Regal Wins Casino. Their Bingo software runs on sites like Lucky Pants Bingo, Kitty Bingo and Bingo Extra. Listed on the London Stock Exchange, Stride hinted last year that it was launched a full strategic review of the company that may end up in sale of the business.
Founded in 2012, Stride Gaming is the operator behind casino brands including Aspers Casino, Lucky VIP Casino, Regal Wins Casino and Spin and Win, as well as online Bingo sites Kitty Bingo, Lucky Pants Bingo and Bingo Extra. The London-listed business announced in February this year that it had launched a strategic review of the business that it said may culminate in a sale.