egaming review magazine
PartyGaming’s IPO will lead to a sharp increase in merger and acquisition activity in the sector, according to BetonSports chief executive David Carruthers.
Carruthers welcomed the US$8.6bn listing and said the success of PartyGaming would motivate other firms to enter the public markets.
But he said the difficulty in achieving public status may lead to firms opting for other exit routes such as trade sales.
And he added the listing of PartyGaming would “absolutely” encourage future M&A activity.
“Strategically it will perhaps motivate some of those in the sector that are private to attempt to go public and some will succeed,” Carruthers said.
“But those that don’t, because they learn about the complexities and difficulties of becoming a public company, may seek alternative ways of harnessing their value.”
“I am looking forward to having conversations with some of those firms some time in the future,” he said.
Carruthers also maintained that despite BoS’ recent purchase of Easybets for a maximum consideration of US$32.5m, the firm was still actively looking for new acquisition targets.
“We are a player, and we will be as active as anybody in the process of consolidation,” Carruthers said.
