Super Group Goes Public With SPAC Merger: Sports Betting Investors Respond
Online sports betting holding company Super Group (SGHC Ltd.) announced that the company was going public following a merger with SPAC Sports Entertainment Acquisition Corp (NYSE:SEAH).
Sports Entertainment Acquisition Corp saw share prices rise late Monday as sports betting stock investors took notice of the partnership and anticipated another global brand making a push into the North American market.
Eric Grubman, SEAH Board of Directors Chairman shared that “Super Group’s core DNA is rooted in digital technology, which drives its unparalleled expertise in data and analytics.”
The merger is being based on capital market valuation of $4.75 billion, and once the deal is finalized, 88% of the Super Group stake will lie in the hands of shareholders.
Super Group will immediately gain access to 10 US states following the completion of a purchase of Digital Gaming Corp., a brand that saw more than $1 billion in net gaming revenue last year. Estimates are projecting this revenue nearly double by 2022.
The completion of the deal will see Digital Gaming Corp. open debt-free and with a balance sheet of nearly $200 million, and licensing advances would pave the way for them to quickly operate in Colorado, Indiana, Iowa, New Jersey, and Pennsylvania.
Digital Gaming Corp. plays parent company to world-renowned sports betting and casino brands, such as Betway and Spin. Betway is well established in the sports betting vertical, and the brand holds over 60 strategic partnerships with top leagues, brands, and teams all over the globe.
Betway recently signed betting partnership deals with the NBA’s Chicago Bulls, LA Clippers, Cleveland Cavaliers, Brooklyn Nets, and the Golden State Warriors. Sponsorship deals have also been inked with numerous NHL franchises.
Along with owning one of the most unoriginal names in the space (is that really the best they could come up with?), the Super Group is currently regulated and licensed to pperate in 23 locations across Africa, Europe and the Americas. With more than 2.5 million unique users participating across their properties monthly, Super Group has surpassed a $42 billion wager handle over the last 12 months.
Investment firm H2 Capital projects that the Super Group capital could top $100 billion over the next 4 years.