Betway owner Super Group to float in New York via SPAC deal

Betway owner Super Group has been targeted in a SPAC deal valuing the online betting group at around US$5bn. The Sports Entertainment Acquisition Corp (NYSE:SEAH) vehicle is to acquire the company and bringing the online betting firm onto the New York Stock Exchange. Concurrently, Betway is acquiring a US sports betting company called Digital Gaming Corp to add access to 10 US states. In Monday’s pre-market the SEAH vehicle is indicated around 7.46% higher at US$10.51 per share. The SEAH special purpose acquisition company (SPAC) will, post-acquisition, subsequently be readmitted to the NYSE with the SGHC ticker symbol. SPAC deals – which see a cash shell float onto the stock exchange prior to striking takeover deals – have been increasingly popular though the first four months of 2021. The Sports Entertainment Acquisition Corp SPAC is backed by Timothy Goodell, an oil executive who is also the brother of NFL commissioner Roger Goodell. Super Group and Betway’s ties to sports meanwhile include partnerships NBA teams Chicago Bulls, Golden State Warriors, Brooklyn Nets and Los Angeles Clippers, as well as English Premier League club West Ham United. The sports betting group has licences in 23 jurisdictions across Europe, the Americas and Africa. It has some 2.5mln monthly active users and in the last year, ended March 31, it took more than US$42bn of wagers. A statement highlighted that the new company will be debt-free and have around US$200mln of cash, along with some US$1.1bn of net gaming revenue and earnings (EBITDA) of around US$259mln. Super Group chief executive Neal Menashe said the move onto public markets will give the company tools to grow its product, technology, and marketing. “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,” Menashe added. SEAH chairman Eric Grubman, meanwhile, said: “Super Group is an online gaming and betting powerhouse with a track record of global growth and a strong balance sheet. “Neal and Super Group’s diverse and multi-talented 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.”  Eric Grubman and John Collins will join the Super Group management team.