June 13, 2019 / 10:07 AM / 4 months ago

Jackpotjoy owner JPJ to buy bingo software provider Gamesys

(Reuters) - 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.

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.

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 licenses 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 annualized cost savings of “single digit millions” pounds in the first full financial year after completion of the deal.

Reporting by Sangameswaran S in Bengaluru; editing by Gopakumar Warrier

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