Online gaming company and sports betting company Super Group have agreed to go public in a USD 4.75 million merger deal with Sports Entertainment Acquisition Corp through a special purpose acquisition company or SPAC. The management team of the SPAC is led by John Collins and Eric Grubman. The other sponsors are PJT Partners, and Timothy Goodell, Wall Street veteran Chris Shumway. As part of the deal, Super Group will purchase Digital Gaming Corp. With the acquisition, the company will get access to markets in 10 US states. These states will include New Jersey, Pennsylvania, and Colorado.
The combined value of the companies after the merger will be around USD 4.75 billion. It will then aim at the multi-billion-dollar betting sports market of the United States. The market is only getting bigger with more and more states legalizing it. According to a forecast of Super Group, it is looking at USD 1.5 billion this year in net gaming revenue. The company is also targeting the market outside the United States. It already has a significant presence overseas with licensed in around 23 global jurisdictions. This is why John Collins once stated that the company doesn’t need to be a leader in the US market in order to stay profitable and grow at the desired rate.
“The group currently has more than 3,500 employees around the world. They are working in over a dozen offices globally. The group has a real operating scale and has a substantial market share in data science and technology. When this is combined with over 20 years of business experience, the group gets real confidence about making an impact in new markets,” Collins said. According to the company, it will be not only debt-free at closing but also have USD 200 million in cash on this balance sheet. The combined company will have Eric Grubman as the chairman and Collins will serve as a member its board.