GAN considers sale to maximize US value
Provider launches strategic review of its operations and considers US listing and strategic partnership
B2B software provider GAN is undertaking a comprehensive strategic review and considering putting the company up for sale in order to maximize the value of its US-facing operations.
The company is also considering listing on a US stock exchange or bringing in a strategic investor to acquire a non-controlling stake.
GAN’s US assets include various gaming licenses, a technology platform, US-patented intellectual property, along with its US clients and local expertise.
Its provides the platform to Paddy Power Betfair’s in New Jersey and West Virginia and is soon to launch Parx Casino’s online product in Pennsylvania.
New York-based boutique investment bank Union Gaming has been appointed to advise the firm through the process.
Despite putting itself up for sale, the company said it is not currently in discussions with any potential buyers.
A Regulus Partners note this morning said the company had put almost all of its eggs in the US basket.
“The big question is whether a small company with limited resources can compete in the US even with a head start, given the level of competitiveness, investment required and uncertainty of both timing and outcome,” the note said.
“GAN has perhaps answered this question by putting itself up for sale this morning.”
In its 2018 FY results, posted today, GAN reported revenues of £10.6m, up 16% on the previous year thanks to movement in the US.