The executives of Japan’s Sega Sammy Holdings said the acquisition of online gaming company GAN Ltd will help create “significant synergy” with the group’s other businesses, especially as the iGaming sector is expected to become legal in more states in the U.S. market.
Sega Sammy Holdings said earlier this month that it would pay about $107.6 million to GAN, a company that provides business-to-business software services in the U.S., and companies that provide business-to-consumer services in Europe and South America. The deal is expected to close by the third quarter of the fiscal year ending in March 2025.
The deal is made through casino equipment maker Sega Sammy Creation Inc., which will acquire GAN through a special purpose company.
“GAN has the technology to provide enterprise-to-enterprise solutions for online casinos, and Sega Sammy Creation has a customer base. We want to grow in the cross-enterprise space by leveraging each other’s pool of users to create a flow that enables cross-selling,” said the parent company’s management.
Satomi Haruki, president and group chief executive officer of Sega Sammy Holdings, and Koichi Fukazawa, group chief financial officer, were mentioned in an analyst briefing following the results for the quarter to Sept. 30.
The executives noted that GAN does not operate an online business targeting consumers in North America, which is “highly competitive.” Instead, they added that GAN is a “provider of a unique technology platform” for operators in North America, and that one of the “three major companies” in the market is “already a significant customer.”
In a separate presentation, Mr. Fukuzawa noted legalization in more states, highlighting growth opportunities in the U.S. market, especially iGaming.
“We want to think about ways to expand this, including a merger with Sega Sammy Creative’s customer base,” he said.
“First of all, we want to aim to build a solid foundation in the North American market, which is stable and well controlled in terms of compliance with large market size regulations,” the CFO added.