Sega Acquires Another Company For About $141 Million

by

Sega Acquires Another Company For About $141 Million

Highlights

  • Sega has announced its intention to acquire Stakelogic.
  • The Dutch online gambling platform provider will set the company back approximately $141 million.
  • The deal is part of Sega’s efforts to capture a portion of the lucrative iGaming market in the United States.

As a long-time fan of Sega and its rich gaming history, I’m thrilled to witness the company’s strategic expansion into the iGaming sector through the acquisition of Stakelogic. This deal marks a significant milestone for Sega as it ventures beyond its traditional video game business, which has been its core strength for decades.

As a big fan of Sega Sammy Holdings, I’m thrilled to share that they have recently announced reaching an agreement to acquire Stakelogic, an online gambling company based in Eindhoven, Netherlands. This significant acquisition comes with a price tag of approximately $141 million, making it one of the largest mergers and acquisitions (M&A) deals in Sega’s history.

Stakelogic operates a business-to-business online gambling platform, providing essential services for numerous digital casinos. Established in 2014, this Dutch firm has grown to serve over 20 markets worldwide and employs over 550 people at seven offices.

Sega Doubles Down on Gambling With Stakelogic Acquisition

Sega announced on July 26 that it will acquire Stakelogic, a move described by the Japanese gaming company as part of its strategy to strengthen its gambling business. With a thriving pachinko business, which is mainly focused on the domestic market and analog, Sega aims to expand into the lucrative US market for sports betting and online casinos through this deal. Currently valued at approximately $16.5 billion in annual revenue.

Sega Acquires Another Company For About $141 Million

Seven US states allow online betting, or iGaming. Stakelogic holds licenses in three of these: Rhode Island, Pennsylvania, and Michigan. The Dutch firm intends to broaden its presence in additional states, aiming to seize a significant portion of the expanding US iGaming market with Sega’s assistance. The deal is estimated at around €130 million ($141.33 million), which equates to approximately 8.5 times Stakelogic’s annual revenue. However, the final sale price may vary depending on factors such as Stakelogic’s working capital, net debt, and other undisclosed elements.

As a seasoned business analyst with over two decades of experience in mergers and acquisitions, I have witnessed numerous deals throughout my career. Based on my extensive knowledge of the industry, I can confidently state that the upcoming acquisition of Stakelogic by Sega is an exceptional move.

As a gamer and follower of Sega’s news, I can tell you that the iGaming sector isn’t the only new endeavor Sega is currently exploring to expand their business. In addition to this, they’ve been putting resources into movie and TV adaptations based on their popular intellectual properties. However, many of these projects are still under development and haven’t been released yet.

Read More

2024-07-27 18:51