Golden Nugget Online Gaming, the online division of the famous casinos owned by Tilman Fertitta, is about to go public, to become only the second online casino operator to be traded on a US exchange.
SPAC Acquisition Paves the Way to Nasdaq
Landcadia Holdings II, Inc, a special purpose acquisition company (SPAC) owned by Tilman Fertitta and investment bank Jefferies LLC, announced today it entered into a purchase agreement to acquire Golden Nugget Online Gaming in a deal that is expected to complete during the third quarter of 2020.
“GNOG is one of the best positioned companies to capitalize on this massive online gaming opportunity in the US. We at Jefferies couldn’t be more thrilled to partner with Tilman and bring this great opportunity to the public markets.”
Rich Handler, Co-Chairman, Landcadia II, CEO, Jefferies LLC
The transaction is valued around $745 million and the payment will be made in a combination of cash and rollover equity in Landcadia II, and upon completion Landcadia II that is publicly traded will change its name to Golden Nugget Online Gaming, Inc. and its NASDAQ trading symbol to GNOG.
Owner of Golden Nugget Tilman Fertitta will remain Chairman and CEO of the combined entity, and Thomas Winter who joined 7 years ago specifically to develop Golden Nugget’s online division and ever since revenues and profitability have been growing, will continue as President of the joined company. The combined entity will have a dual-class share structure with super voting rights for Mr. Fertitta.
“Golden Nugget is one of the most time-honored brands in the gaming business today. When customers hear the name Golden Nugget, they know they are dealing with a trusted online gaming business. Thomas and his team have done a remarkable job, are the best in the industry, and with this transaction, will have access to growth capital to allow for the rapid expansion of the business.”
Tilman Fertitta, Chairman and CEO, Golden Nugget
Golden Nugget is a popular name in the gambling industry in the US, as well as an established leader in the New Jersey market, which is the largest online gaming market in North America. The casino operator was the first to introduce Live Dealer games broadcasting directly from its Live Studio since 2016.
Golden Nugget generated 33.8% of the gross gaming revenue of $85.9 million for the state in May. The company also gained access subject to regulatory approval for the markets in Pennsylvania and Michigan with the launch of its online casino offering anticipated for early 2021.