Betway’s parent company Super Group is nearing a deal to go public through a merger with blank-check acquisition firm Sports Entertainment Acquisition Corp at a valuation of about $5.1 billion.
The deal comes as Betway, which has its roots in Europe, expands in the US. Betway has also agreed to acquire Digital Gaming Corp, tapping the online sports betting and gaming market in 10 U.S. states.
Shareholders accounting for more than two-thirds of Super Group’s equity will maintain their stakes under the deal.
Sports Entertainment’s executive chairman, Eric Grubman, a former National Football League (NFL) executive, will become chairman of Super Group, and Sports Entertainment CEO John Collins, a former National Hockey League chief operating officer, will join Super Group’s board.
SPACs, such as Sports Entertainment, are shell companies that raise funds in an initial public offering with the aim of merging with a private company, which becomes public as result, providing an alternative to traditional IPOs.