The anticipated acquisition of GAN by Sega Sammy is now set for completion in mid-2025 after both companies amended their merger agreement. The extension gives them additional time to navigate regulatory approvals, pushing the deadline to May 31, 2025.
New Timeline Gives More Breathing Room
Sega Sammy’s acquisition of GAN was first announced in November 2023, with a deal valued at $107.6 million. The Japanese gaming giant agreed to purchase the online gambling technology provider at $1.97 per share. Originally, both parties aimed to close the transaction before the end of 2024.
That target has now been revised. On February 7, GAN and Sega Sammy officially amended their agreement, extending the final termination date to May 31, 2025. If regulatory approvals are not secured by then, either party can walk away from the deal.
One thing is clear—this delay isn’t about hesitation or second thoughts. Instead, it reflects the often-lengthy process of obtaining necessary approvals from gaming regulators.
Regulatory Approvals Still in Progress
Mergers in the gaming industry don’t move at lightning speed, and this deal is no exception. While GAN and Sega Sammy have already checked some key regulatory boxes, there’s still work to be done.
A major milestone was reached in October 2024 when the Nevada Gaming Commission gave its approval. This came after an initial green light from the Nevada Gaming Control Board a month earlier. But Nevada isn’t the only jurisdiction that needs to sign off. Other regulatory bodies are still reviewing the deal, contributing to the timeline extension.
GAN CEO Seamus McGill acknowledged the extended approval process but emphasized that progress is being made. “The parties continue to respond to regulatory requests. This process takes time, but we are making great progress and working with Sega Sammy in anticipation of a successful closing,” McGill said.
What Happens After the Deal Closes?
Once the merger is finalized, GAN will be absorbed into Sega Sammy Creation (SSC), a subsidiary of Sega Sammy Holdings that focuses on gaming technology for land-based casinos.
This will mark a significant transition for GAN:
- It will no longer operate as a publicly traded company.
- Its ordinary shares will be delisted from the Nasdaq Capital Market.
- It will be deregistered under U.S. securities laws.
For Sega Sammy, this acquisition is a strategic step in expanding its footprint in the North American gaming market.
North America Remains a Key Focus
Sega Sammy has made no secret of its ambition to grow in the U.S. gaming sector. The company sees GAN’s technology and expertise as valuable assets in this expansion strategy.
At the same time, GAN has faced challenges in the U.S. market. CEO Seamus McGill pointed to several factors, including:
- The dominance of major players in the B2C online gaming space.
- A slower-than-expected rollout of regulated online gambling in the U.S.
- Changes to key customer contracts affecting revenue streams.
With these hurdles in mind, McGill said the merger with Sega Sammy is a necessary move. “Market share concentration in the U.S. B2C space, a slower-than-expected adoption of regulated online gaming in the U.S., along with changes to key customer contracts, make the near-term operating environment challenging without ample capital resources,” he explained.
He added that Sega Sammy has the financial strength to support GAN through these challenges, calling the deal a “value-maximizing path” for shareholders.
Sega Sammy’s Growing Gaming Investments
The GAN acquisition isn’t happening in isolation. It’s part of a broader investment strategy by Sega Sammy to expand its presence in the gaming sector.
In July 2024, the company made another major move, acquiring online game developer Stakelogic for $143.2 million. This investment signaled a deeper push into digital gaming, complementing its existing focus on land-based casino technology.
By acquiring GAN, Sega Sammy is reinforcing its position in the gambling technology market, particularly in North America. The extension to mid-2025 may not be ideal, but it ensures all regulatory hurdles are cleared before the deal is finalized.
Leave a Reply