Betway Owner to Debut on the NYSE Via a $4.75b SPAC Deal

Super Group, the parent company behind Betway, one of the leading online sportsbook brands across the globe, is poising itself to become a publicly listed company on the New York Stock Exchange (NYSE). However, like Genius Sports Group, and several other gaming and entertainment companies of late, Super Group Holding Co. is looking to fast-track its way to public debut via a SPAC or blank check company rather than the traditional IPO way.

The Betway holding company has penned a merger agreement with Sports Entertainment Acquisition Corp (SEAH), an NYSE-listed Special Purpose Acquisition Company (SPAC), to use it as a vehicle to start trading on the NYSE. This blank check deal puts Super Group’s pre-money equity value at $4.75 billion, which is about 2.6x its projected 2022 revenue. Upon closing the transaction, the merged company will start operating as Super Group and list its shares on the NYSE under the “SGHC” ticker symbol.

After the official announcement of the merger a week ago, SuperGroup Chief Executive Officer Neal Menashe voiced his confidence in the plan by saying:

Quote

We have established our group as a truly global, scaled and profitable digital gaming business, delivering on our vision to bring first-class entertainment to the worldwide betting and gaming community. Becoming a public company will give us the tools to continue to grow our leading product and technology offering and deliver a strengthened brand-driven marketing strategy.
This listing will position us strongly to capitalize on the significant global growth opportunities ahead ‒ including in the U.S. market ‒ enabling us to further expand our robust, loyal and engaged customer base. In Eric and John, we have found the perfect partners with expertise across sports, entertainment and public markets to help us navigate our next phase of growth.

Eric Grubman, the chairperson of the Sports Entertainment Acquisition board of directors, also had a few words to say in the following briefing:

Quote

Super Group is an online gaming and betting powerhouse with a track record of global growth and a strong balance sheet. Super Group’s core DNA is rooted in digital technology, which drives its unparalleled expertise in data and analytics. Neal and Super Group’s diverse and multitalented global team have a great playbook for how to successfully launch and achieve profitable growth in new markets, and we look forward to partnering closely with them on this exciting next chapter as a public company.

Key Terms of the Super Group – Sports Entertainment Transaction

After the transaction is complete, Mr. Eric Grubman, who served the NFL as an Executive Vice President of Business Operations until 2018, will take over as the merged company’s CEO. Another former executive of professional USA sports leagues, John Collins, will be flanking Grubman as a board member of the merged company.

Mr. Collins served as the President and CEO of the NFL team Cleveland Browns from 2004 to 2006 and most recently as Chief Operating Officer of the National Hockey League until 2015. Awaiting completion of the business combination, he continues with his role as the Chief Executive Officer of the Sports Entertainment SPAC alongside Grubman, the present-day board chair. 

According to the official announcement from the two parties, if none of the SEAH shareholders will redeem their shares, SEAH will deliver about $450 million in cash to the merged company. Further, the current Super Group shareholders will hold nearly 90% of the combined company’s shares upon closing. Overall, the newly formed company will launch operations with a zero-debt balance sheet and about $200 million in cash. As usual, this transaction is subject to shareholder approval and standard closing conditions. The two parties expect to have sealed the deal for NYSE listing by H2 2021.

Betting Big on the Burgeoning USA Gaming Industry

The Super Group holding company has a massive footprint in Europe, the Americas, and Africa, having received operating licenses in 23 jurisdictions in the regions. Its Betway brand is a household name, particularly in the sports betting industry, and has formed over 60 partnerships across different parts of the globe.

For instance, in the USA, Betway has partnered with several NBA teams, including the L.A. Clippers, Brooklyn Nets, Golden State Warriors, and the Chicago Bulls. Elsewhere, Super Group’s Betway is also a partner of West Ham United, an English Premier League football club, and Ninjas in Pyjamas, a famed eSports team.

Through the business combination with the SEAH SPAC, Super Group is doubling down on capturing a more significant share of the rapidly growing USA gaming market. Recently the holding company entered into an agreement with Digital Gaming Corporation for rights to nearly a dozen gambling-legal U.S. states, including Iowa, Indiana, Colorado, Pennsylvania, and New Jersey.

Presently, Super Group operates the Betway brand via four different gambling products: Betway Sports, Betway Casino, Betway Live & Real, Betway Esports, and Betway Vegas. Betway aside, the other top-rated brands under the umbrella of Super Group are Spin Casino, Hippodrome Casino, and Dream Bingo.