Jackpotjoy owner JPJ to buy bingo software provider Gamesys

Jackpotjoy owner JPJ Group said on Thursday it agreed to buy bingo software developer Gamesys for about $621.1 million, to cut its reliance on third-party technology platforms and tap into Gamesys' brands to boost international growth.

June 13 (Reuters) - Jackpotjoy owner JPJ Group JPJ.L said on Thursday it agreed to buy bingo software developer Gamesys for about $621.1 million, to cut its reliance on third-party technology platforms and tap into Gamesys' brands to boost international growth.

JPJ Group said the combined company would be renamed as Gamesys Group Plc and should qualify to be a part of FTSE mid cap index .FTMC.

JPJ Group shares were up 5.2% at 809 pence by 0940 GMT

Gamesys' Virgin Bet branded sports betting business, Livescore sports data and media business and certain non-bingo games studio and supply business of Gamesys are not part of the deal, JPJ said in a statement.

However, JPJ will buy games content and brand licences of Virgin Games, Virgin Casino, Monopoly Casino, and Heart Bingo.

JPJ said the acquisition is expected to add double-digits to its earnings per share in the first full financial year ownership in fiscal year 2020.

JPJ will fund the deal through 250 million pounds in cash, of which 175 million pounds would be from JPJ's existing debt facilities, and 240 million pounds through new shares.

JPJ also expects annualised cost savings of "single digit millions" pounds in the first full financial year after completion of the deal.

($1 = 0.7890 pounds)

(Reporting by Sangameswaran S in Bengaluru; editing by Gopakumar Warrier)

((Sangameswaran.S@thomsonreuters.com; within U.K +44 020 7542 1810; outside U.K. +91 80 6749 3544; Reuters Messaging: Sangameswaran.S.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More