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Mergers & Acquisitions

$745m acquisition set to see Golden Nugget Online Gaming go public

Golden Nugget Online Gaming (GNOG) is to go public after Landcadia II entered into a purchase agreement to acquire it.

GoldenNugget

The online casino division of Golden Nugget, owned by Tilman Fertitta’s Landry’s Incorporated, will become just the second publicly traded online casino company in the US, when it goes public on the Nasdaq exchange.

Landcadia II, a blank check special purpose acquisition company, intends to change its name and Nasdaq trading symbol to GNOG when the acquisition goes through as expected, in Q3 2020.

The transaction values GNOG at approximately $745m, or 6.1x GNOG’s estimated 2021 revenue of $122m. The amount payable to GNOG will consist of cash and rollover equity in Landcadia II.

Landcadia II will assume $150m of GNOG debt, and upon payment of purchase price, debt repayment and transaction fees, the combined company will have at least $80m on its balance sheet, and an anticipated pro forma equity market capitalisation of nearly $700m.

Current GNOG owner Fertitta, will remain CEO and chairman of the combined company, while Thomas Winter will continue to serve as the operator’s president. Landcadia II was already co-sponsored by Fertitta’s holding company, Fertitta Entertainment.

Rich Handler, Landcadia II co-chairman, said: “GNOG is one of the best positioned companies to capitalize on this massive online gaming opportunity in the US.”

GNOG generated net income of more than $11m in 2019, and started operations in New Jersey, back in 2013.

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