Rank Group completes acquisition of Stride Gaming
Rank Group, the parent company of Mecca Bingo and Grosvenor Casinos, has finalised its acquisition of online casino and bingo operator Stride Gaming.
In a statement released this morning (4 October), Rank said that it now owns the entire issued ordinary share capital of Stride. Rank’s original bid that it lodged in May was worth £115.3m(€129.5m/$142.2m).
As per the terms of the acquisition agreement, admission to the trading of Stride shares on AIM will be cancelled from 7.00am on October 7. Scheme Shareholders on the register at 6pm today will receive 151 pence in cash for each share.
Consideration due to the scheme shareholders will be sent no later than October 18.
“Today marks a significant day for Rank,” Rank Group’s chief executive John O’Reilly said. “This acquisition delivers a proprietary technology platform and highly experienced team which will accelerate the transformation of Rank and create one of the UK's leading online gaming businesses.
“Our focus now turns to ensuring we successfully integrate Stride into Rank and realise the potential of our new enlarged digital business.”
Completion of the acquisition comes after a court sanctioned the deal earlier this week. Stride shareholders voted to back the deal in July, while the GB Gambling Commission last month also gave its approval to the acquisition.
When announcing the original offer, Rank said that the merger would create a business with pro forma digital net gaming revenues of approximately £185m.
Rank also said the acquisition would help to improve its performance and reduce costs through migration to Stride’s proprietary technology platform and in-house ecosystem.
Other benefits, according to Rank, include significant value from strong synergies and greater financial flexibility to the combined business, while the addition of senior Stride staff will strengthen its management team.