NGCB gives go-ahead for Sega Sammy acqusition of GAN

The Nevada Gaming Control Board (NGCB) has cleared Sega Sammy Creation. to pursue its acquisition of GAN, a B2B and B2C gambling company. The Japanese subsidiary of Sega Holdings Inc., Sega Sammy Creation will now have to wait for a ruling from the Nevada Gaming Commission which is due on September 26.

NGCB says Sega Sammy may acquire GAN, Commission’s decision pending

Should the commission find no issue with the acquisition, the deal should clear the final closing measures by late 2024 or early 2025. GAN ordinary shares will be canceled and converted into $1.97 cash upon completion of the deal, giving Sega Sammy Creation Inc. access to new technology and reach with global audiences.

As a developer of business-to-business solutions, GAN has been able to steal a march on the market in the United States creating a powerful software system, GameSTACK, that has been a hit with operators in the country.

For its part, Sega Sammy Creation is looking to diversify its lineup, as the company has been known for its pachislots and pachinko game machines, but is looking to further strengthen its presence in more traditional gambling verticals.

GAN has faced issues of its own, with the NGCB questioning the company over its financials as well as corporate culture. Sega Sammy Creation has offered assurances that any outstanding issues and qualms that the Board might have about GAN’s management or outstanding finances will be solved once the acquisition is completed.

Sega Sammy may have used a subsidiary to complete the acquisition, but it has said firmly that it treats the gaming business as one of its core pillars, and the acquisition of GAN is taken very seriously as it allows the company to rapidly scale its presence in a lucrative market with a gigantic serviceable audience.

Sega Sammy has the cash to make GAN’s B2B and B2C businesses shine

Money is also of no concern, as Sega Sammy is offering between $500m and $700m to make sure that the company is put back in good shape. Speaking to the NGCB, Sega Sammy Creation President and COO Naoki Kameda said that the company was "cash-rich" and was able to enact the necessary changes that will have the desired transformative effect at the core of GAN.

Sega Sammy Creation offered $107.6m to buy out the business, as it sought to strengthen its position in the gambling market. Back when the proposal was made in November 2023, GAN Interim CEO and Chairman Seamus McGill spoke about the need to inject cash into the company to make it perform at its very best.

Image credit: Sega Sammy Creation