SEGA SAMMY cements its iGaming future with GAN acquisition

SEGA SAMMY has completed its acquisition of GAN Limited, marking the company’s steps into the wider gambling business. The deal, which was announced back in 2023, will allow SEGA SAMMY to further head down into the gambling business outside of its current offerings.

SEGA SAMMY (SS) is the parent company of the video game company SEGA, and has gone through some significant changes since the pandemic in 2020. After a significant restructuring, SS sold off 85% of its arcade business, including shutting down its legendary arcades in Japan.

However, it held onto its Japanese gambling businesses, which deal with pachinko and pachislot. These were the center of SEGA SAMMY’s business before SAMMY acquired SEGA.

Its video game business saw a massive boom in recent years, too, with acquisitions like Atlus (publisher and developer behind hugely popular titles like Persona) generating massive income.

SS has also seen success in Hollywood, with the three Sonic the Hedgehog movies being a major player for the ever-increasing video game adaptations.

All of this plays into the huge shift in SEGA SAMMY’s operations. With a new influx of income and going from strength to strength, it has set the stage for the company’s move into iGaming through GAN’s software offerings.

GAN operates mainly in the US, but it has divisions to focus on bringing its betting tech to Europe and Latin America. With three major areas covered by the buyout, which SEGA SAMMY has done for 121% of GAN’s stock price from 2023, cements the Japanese company as a dominant force worldwide in terms of gambling.

One other point of the deal is that GAN will stop being a publicly traded company and will be removed from the NASDAQ.

GAN Limited’s CEO, Seamus McGill, said in a press release:

“Our acquisition by SSC is an exciting next step for GAN and the culmination of many years of hard work to deliver an unparalleled and unique gaming experience for our clients and players.

“GAN’s board of directors carefully evaluated a range of options to maximize shareholder value, and SSC’s recognition of the value of our assets and people leaves us confident that this transaction is in the best interest of our shareholders and provides a home for our assets to flourish.

“We look forward to seeing the company continuing to grow with the guidance of a global gaming and entertainment leader.”

Koichi Fukazawa, Senior Executive Vice President and Group CFO of SEGA SAMMY said:

“We are excited to be bringing the GAN team onboard. The team brings significant experience in the U.S. market, along with significant technical and development resources.

“This marks a new chapter in SEGA SAMMY’s operations, and we look forward to serving our customers with increased product offerings and resources.”

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