Sega Sammy to Purchase Gaming Developer Stakelogic

Article by : Erik Gibbs Jul 30, 2024

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Sega Sammy Holdings, the Japanese entertainment conglomerate, has announced its acquisition of Stakelogic B.V., a fast-growing Dutch game developer known for its innovative online slot games and live casino capabilities. The agreement, which involves the sale of 100% of Stakelogic’s equity shares, is set to propel Sega Sammy into a new era of digital entertainment, particularly in the burgeoning iGaming sector.

The transaction, valued at an upfront enterprise value of $150 million, with an additional earnout payment contingent on Stakelogic meeting certain performance measures, represents a strategic move by Sega Sammy to diversify its portfolio and establish a stronger foothold in the online gaming market. This acquisition is not just a financial investment but a partnership that aims to leverage the strengths of both companies to create a formidable presence in the industry.

Stakelogic, established as a creative force in the iGaming world, brings to the table a catalog of highly popular online slot games, a live casino studio, and a hybrid game offering that has seen rapid growth in recent years. Its in-house game development factory has been at the forefront of technological innovation, delivering engaging and immersive gaming experiences to players worldwide.

Sega Sammy, with its global distribution platform, sees this acquisition as an opportunity to expand its operations and reach in the iGaming market, which is projected to double in size in the coming years. The integration of Stakelogic’s content and technological prowess with Sega Sammy’s distribution capabilities is expected to create synergies that will accelerate growth and innovation.

Stephan van den Oetelaar, CEO of Stakelogic, expressed enthusiasm for the acquisition, noting that both companies share a passion for online entertainment, innovation, and technology. He emphasized that the partnership with Sega Sammy would enable Stakelogic to grow its international operations at a much faster rate and capitalize on the expanding regulated iGaming market.

On the other side, Koichi Fukazawa, Senior Executive Vice President and Group CFO of Sega Sammy, highlighted the strategic importance of the acquisition, stating that it aligns with the group’s aim to establish a presence as a creative B2B solution provider based on innovative technology. He expressed confidence in Stakelogic’s ability to rapidly develop and provide unique, high-quality gaming content, which will significantly contribute to Sega Sammy’s strategy and enhance its gaming business.

The acquisition is subject to regulatory approvals in relevant jurisdictions and the satisfaction of other customary conditions. It is expected to close by the second quarter of the calendar year 2025, marking a new chapter for both Sega Sammy and Stakelogic as they embark on this collaborative journey.

This move by Sega Sammy is part of a broader strategy to penetrate the North American online gaming market, which has shown promising growth potential. The company’s recent acquisition of GAN Limited, a SaaS provider for casino operators in the US and a B2C online gaming operator in Europe and South America, underscores its commitment to becoming a leading player in the online gaming space.

The US online gaming market, which includes sports betting and iGaming, was valued at approximately $12.0 billion in 2022 and is expected to reach $27.1 billion by 2027. With a compound annual growth rate (CAGR) of 15% for sports betting and 11% for iGaming, the market presents a lucrative opportunity for Sega Sammy to leverage Stakelogic’s content development expertise and GAN’s B2B platform to offer a competitive edge.