Jackpot Joy owner JPJ to buy bingo software developer Gamesys
Jackpot Joy owner JPJ Group has agreed to buy bingo software developer Gamesys for around £490m.
Following the acquisition, JPJ will have ownership of its technology platform and operations, and a reduced reliance on third-party providers.
The acquisition excludes Gamesys’ Virgin Bet branded sports betting business, Livescore sports data and media business and certain non-bingo games studio and supply businesses. However, it will see JPJ acquire a portfolio of "complementary, market-leading and high growth" games content and brand licences, including Virgin Games, Virgin Casino, Monopoly Casino, and Heart Bing.
The enlarged company will be renamed Gamesys Group and should qualify for inclusion in the FTSE 250, JPJ said. Annualised cost savings from the deal are expected to be in the "single digit millions" of pounds and be realised within the first full year after completion.
JPJ pointed out that Gamesys has a history of delivering high growth, with double-digit growth in net revenues and adjusted earnings over the past three years. In addition, it has been "highly" cash generative.
JPJ's executive chairman, Neil Goulden, said the deal marks "an important transformational step" in the company'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."
At 1255 BST, JPJ shares were up 5.3% at 810p.