Instant cash injection
Bally’s Corporation has plenty of cash to splash after it completed a complex merger and acquisition transaction with Greek lottery giant Intralot, first announced in July.
A news release from Bally’s revealed the M&A transaction was completed Thursday, with Intralot sending €1.53bn ($1.74bn) in cash, and €1.136bn ($1.314bn) in newly issued shares.
58% equity interest
In return for cash and shares, Intralot now owns the Rhode Island-based firm’s tech arm Bally’s International Interactive, while Bally’s now has 58% equity interest in the Athens Stock Exchange-listed firm.
In a move that extended both firms’ global ambitions, the Greek iGaming company will rebrand to Bally’s Intralot and integrate its new data platform and technology into its infrastructure. Bally’s stated the merger will give Bally’s Intralot “a powerful foundation for long-term expansion to capitalize on an addressable market” projected to reach €200bn ($231bn) globally by 2029.
For now, however, a resurgent Bally’s has plans to put the €1.53bn to work straightawa,y paying off debts and giving its Chicago casino development a cash injection.
Brands stars’ align
The M&A sees two high-flying brands come together, with Bally’s international status as an American gaming icon and its advanced technology meeting Intralot’s global lottery expertise in 40 regulated jurisdictions worldwide.
Bally’s sees major opportunities for the Bally’s Intralot strategic alignment, including driving growth, long-term value creation, and cross-selling opportunities. Bally’s expects the rebranded firm to generate annual revenue of around €1.1bn ($1.2bn) “with industry-leading EBITDA margins in excess of 39%.”
No surprise then that the Rhode Island firm intends to be active in “shaping the strategic direction” of Bally’s Intralot. Robeson Reeves, who called the Intralot deal “a milestone transaction for Bally’s” will oversee the new entity while maintaining his role as Bally’s CEO.
Splashing the cash
At $1bn of the post-tax proceeds of the Intralot transaction will go to Bally’s Twin River Lincoln Casino Resort and its Chicago casino under development. Bally’s has earmarked $500m for the former and $200m cash for Chicago.
The Intralot transaction signals a satisfying start to October for Bally’s after its $4bn Bronx casino project qualified for the final selection stage of the New York City casino license award process.
