It’s taken a while, but Rank have finally completed the acquisition of Stride Gaming. There had been a wait for the UK Gambling Commission to approve the deal. A final meeting was held earlier this month and the £115.3m deal has now gone ahead. October 7 was the final day that Stride Gaming traded under that name.
The news of this latest acquisition by Rank will see them take control of Stride’s entire (diluted) share capital. Shareholders of Stride Gaming had voted in favour of the takeover bid at a meeting held in July of this year. 96.43% of votes cast were in favour of the deal with only 3.57% not in favour of it going ahead.
Stride Gaming own sites such as Kitty Bingo, Lucky Pants, Spin & Win and Bingo Extra. Rank believe that the deal will see significant improvement to its performance and reduce overall costs. Their operating profits have been falling with operating profits slipping from £50.1m to £39m in their latest accounts that go up to the period ending June 30. Like-for-like revenue has also shown a slight fall, but turnover went up from £691m to £695.1m with online gaming helping this increase.
It’s believed that this deal won’t have too much of an effect on new and existing customers on the brand’s current platform. Changes might include areas such as theme and a new design.
Rank Group’s chief executive John O’Reilly says that the acquisition was “a significant day for Rank.” He praised the Stride Gaming team describing it as “highly experienced” and one that “will accelerate the transformation of Rank.” The aim is to create “one of the UK’s leading online gaming businesses.”
Now Rank have the job of integrating Stride into their business and to “realise the potential of our new enlarge digital business,” added Mr O’Reilly.