GAN Limited shares surged 83% to $1.63 in midday trading on Wednesday after the sports-betting technology provider agreed to be acquired by Sega Sammy Holdings, a Japanese company known for its arcade and video games.
Sega Sammy said it will pay $1.97 per share for GAN, a 121% premium to Tuesday’s closing price, or a total consideration of about $84.4 million.
It added that acquiring GAN will help expand its gaming business and wider gaming portfolio.
"Market share concentration in the US B2C space, a slower than expected adoption of regulated online gaming in the US, along with changes to key customer contracts make the near-term operating environment challenging without ample capital resources," GAN interim CEO Seamus McGill said in a statement.
GAN recently parted ways with its former CEO Dermot Smurfit after more than 21 years.
The company expects the acquisition to close by the fourth quarter of 2024.
Shares of GAN have gained 19% year to date.
Contact Sean at sean@proactiveinvestors.com