Betway owner Super Group announces US listing with $4.75bn SEAC merger

Betway’s owner has announced plans to pursue a listing in the US market.

Super Group, the company behind the online gambling operator Betway, has entered a definitive agreement to merge with the special purpose acquisition company (SPAC) Sports Entertainment Acquisition Corp (SEAC).

The agreement

Under the agreement, Super Group will merge with SEAC and apply to have its shares listed on the New York Stock Exchange (NYSE). If successful, the new business will operate under the name Super Group and trade on the NYSE under the SGHC ticker symbol.

SEAC agreed to merge with Betway’s parent company based on a $4.75bn pre-money equity valuation.

As long as there are no redemptions by SEAC shareholders, the transaction is expected to deliver roughly $450m in cash to the combined business. 

Meanwhile, Super Group’s existing shareholders will retain approximately 88% of shares in the combined business. The new group is expected to have approximately $200m in cash once the transaction closes.

In addition to this, shareholders with more than 70% of Super Group’s equity will not sell any shares and will instead roll their equity position into the new public entity.

Both Super Group’s and SEAC’s boards have unanimously approved the transaction. 

Although the deal still requires approval from SEAC shareholders and must meet customary closing conditions, the deal is expected to close in the second half of 2021.

The combined business is expected to generate $1.5bn in net revenue and more than $350m in earnings before interest, tax, depreciation, and amortization (EBITDA) in 2021.

Neal Menashe, CEO of Super Group, said: “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. 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.”

Eric Grubman, Chairman of the Board of Directors of SEAC, said: “Super Group is an online gaming and betting powerhouse with a track record of global growth and a strong balance sheet. 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.”

Super Group to acquire Digital Gaming Corporation

In addition to the transaction, Super Group announced it has entered an agreement to acquire Digital Gaming Corporation (DGC) to help support its US expansion. This deal is also subject to regulatory approval.

DGC currently holds the exclusive rights to use the Betway brand in the US. So far, DGC has secured market access for online gambling in 10 states which include New Jersey, Pennsylvania, Colorado, Indiana, and Iowa.

The Betway parent has appointed former NFL executives Eric Grubman and John Collins to lead its US expansion efforts.

Menashe added: “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. In Eric and John, we have found the perfect partners with expertise across sports, entertainment and public markets to help us navigate our next phase of growth.”

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