The parent of online gambling company Betway is reportedly close to finalizing a merger deal with blank-check acquisition company Sports Entertainment Acquisition with the negotiations expected to see Super Group go public at an estimated valuation of $5.1 billion.
The plan to go public comes as Betway expands its largely European business to the United States. The company recently finalized an agreement to acquire American betting company Digital Gaming. The acquisition gives Betway access to Digital Gaming's existing online sports betting and gaming business, which is operating in 10 U.S. states.
Betway Group, which owned popular online better brands such as Betway Casino, Betway eSports, Betway Sportsbook, and Betway Vegas, entered the U.S. betting market in 2018 after the nation lifted the ban on sports betting.
Betway's platforms allow customers to place bets on popular sporting events around the world. This includes popular events such as the UK's Premier League football tournament and the Indian Premier League.
The company also signed partnership contracts with various sports teams such as the Chicago Bulls, the Brooklyn Nets, and the English football team West Ham United. Betway also has existing contracts with individual players, including former cricketer Kevin Pietersen and former jockey Katie Walsh.
Sources said shareholders of Super Group's equity will maintain their stakes under the SPAC merger deal. Sports Entertainment's current executive chairman, Eric Grubman, will become the new chairman of Super Group. Meanwhile, Sports Entertainment's CEO, John Collins, will join the company as its new chief operating officer.
Sports Entertainment Acquisition completed its IPO in October last year. The company raised around $400 million through the deal. The transaction was backed by the Hess Corp's Timothy Goodell and an affiliate of investment bank PJT Partners.
After it merges with Sports Entertainment, Super Group will effectively become public. Mergers with SPACs, which are just shell companies established to merge with private companies, have become a popular alternative to traditional IPOs in recent years. SPAC mergers have slowed down a bit following a record start this year after regulators tightened accounting requirements.
