News that Landcadia Holdings II Inc. (NASDAQ: LCA) aims to acquire Golden Nugget Online Gaming had its shares jumping to start out the week. Landcadia came public back in April as a special purpose acquisition company (SPAC), and these SPACs have been all the rage in the market this year.
According to the Golden Nugget deal, the transaction values the combined company at an anticipated pro forma enterprise value of approximately $745 million, or 6.1 times Golden Nugget Online Gaming’s estimated 2021 revenue of $122 million.
Landcadia II will be assuming $150 million of Golden Nugget Online Gaming debt and will pay down at closing an additional $150 million of its debt, plus pay prepayment fees, transaction fees and expenses.
Upon completion of the transaction, Tilman Fertitta, board chair and chief executive, will, through the parent entity of Golden Nugget Online Gaming, hold a controlling economic interest and a controlling voting interest in the combined company. That company will have a dual-class share structure with super voting rights for Fertitta.
Note that Golden Nugget Online Gaming is a U.S. online real money casino owned by Fertitta. After this deal, it will become only the second pure publicly traded online casino company in the United States.
The company listed a few of the highlights from Golden Nugget Online Gaming as follows:
- Became profitable in 2016.
- Was the first online gaming company to launch Live Dealer in the United States.
- Launched the first Live Casino Floor in the United States.
- Had a net income of over $11 million in 2019.
Landcadia stock traded about 32% on Monday to $13.27, in a 52-week range of $8.82 to $15.72.
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