GAN flexes M&A muscles in undisclosed deal for Silverback Gaming
GAN has completed the acquisition of Bulgaria and UK-based online casino content studio Silverback Gaming on undisclosed terms.
The purchase provides GAN with exclusive rights globally to all current and future games developed by Silverback, which GAN said should include 50 new slot games over the next three years.
GAN said the acquisition would bolster its SuperRGS offering, which launched last month in the US, by adding an exclusive portfolio of online slot games to the platform over the coming years.
Silverback’s portfolio will be incorporated into SuperRGS from the first half of next year, if all goes according to plan.
The deal forms part of GAN’s content acquisition strategy to increase its overall take rate on B2B operator revenue derived from iGaming, while growing its share of iGaming revenue from B2C operators in the US, who are not already GAN clients.
“We are delighted to bring Silverback’s innovative slot content into GAN’s fast-growing portfolio of online slot games,” said Dermot Smurfit, president & CEO of GAN.
“Silverback has built its reputation in this industry as a leading slot design innovator and we welcome the team’s talent, including slot mathematicians and software engineers, which will be an invaluable long-term asset as we build upon our strategy of expanding our exclusive online slot games for distribution in the US.
“We are very pleased with the progress surrounding our SuperRGS strategy and today’s announcement is the next exciting step in that strategic initiative,” Smurfit concluded.
Last week, GAN sanctioned a share repurchase programme allowing the business to buy back an aggregate of up to $5m of its ordinary shares, between now and 31 May, 2022.
In November, the company reported widening losses and reduced revenues quarter-over-quarter, as the business declared a Q3 net loss of $7.9m and Q3 revenue of $32.3m.
While Smurfit said the results were in line with expectations, GAN’s share price fell from $14.72 prior to the release of the report to $13.60 in its wake. It continued to tumble in the ensuing weeks, dropping as far as $9.08.
At the time of writing, GAN’s share price sits at $10.03, up 5.3% on yesterday’s closing price of $9.53.