Betway owner Super Group announces plans for $4.75bn NYSE IPO

Super Group, the company behind the online casino and sportsbook operator Betway, has announced plans to merge with the special purpose acquisition company, Sports Entertainment Acquisition Corp (SEAC), to go public on the New York Stock Exchange (NYSE).

Super Group also plans to use this transaction to help expand its presence across the US betting market.

SEAC, which was founded by former NFL VP Eric Grubman and partner John P Collins, the former operations lead for the NHL, executed its NYSE IPO in October after securing $450m to target new US wagering ventures.

The transaction

According to the announcement, SEAC plans to lead Super Group’s NYSE listing and is targeting a $4.75bn valuation.

Once completed, the combined business entity will trade on the NYSE under the “SGHC” symbol and will operate under the name Super Group.

The special purpose acquisition company highlighted Super Group’s proven track record as a global betting business “delivered $1.1 billion in net gaming revenue (NGR) and $259 million EBITDA in 2020 on a pro-forma basis and forecasts.”

Super Group listed Betway and multi-brand casino operator Spin as its online gambling assets. 

According to the announcement, the assets operate within “23 jurisdictions throughout Europe, the Americas and Africa, took in more than $42 billion in wagers in the 12 months to March 2021, maintaining 2.5 million monthly unique active customers.”

Assuming there are no redemption by SEAC shareholders, the transaction will deliver $450m in cash to the new business. Super Group shareholders will hold onto 88% of shares in the combined entity. 

The new business plans to have approximately $200m in cash upon closing.

Under the agreement, it is also stated that shareholders with more than 70% of Super Group’s equity will not sell shares. Instead they will roll their equity positions into the new company.

Both company boards have unanimously approved the transaction, however, it is still subject to approval from SEAC shareholders and customary closing conditions. The merger is expected to be finalised in the second half of the year.

According to the announcement, the combined business is forecast to post more than $1.5bn in net gaming revenue and over $350m in earnings before interest, tax, depreciation and amortization (EBITDA) in 2021.

This is expected to increase in 2022 with net gaming revenue and EBITDA forecast to rise to $1.7bn and $420m, respectively.

Neal Menashe, CEO of Super Group, said: “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 US 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, Chairman of the Board of Directors of SEAC, said: “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 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.”

Super Group to acquire DGC

To help bolster its plans for US growth, the operator also revealed it had agreed on definitive terms to acquire Digital Gaming corporation (DGC) which is the US licensing partner of Betway.

In March, it was announced that Betway had secured its first US sports betting partnerships through DGC.

So far, DGC has secured market access for online gambling in 10 states which include New Jersey, Pennsylvania, Colorado, Indiana, and Iowa.