EveryMatrix Wants to Buy Fantasma Games for SEK 209.8 Millions

EveryMatrix Wants to Buy Fantasma Games for SEK 209.8 Millions in a public proposal to acquire all of their outstanding shares.  At the moment, the shares of Fantasma Games AB, a Swedish developer specializing in online casino games, are at a price of SEK 59 ($5.79) per share in cash.

This offer values Fantasma at approximately SEK 209.8 million. The company's shares are traded on the Nasdaq First North Growth Market. The proposed price signifies a 21.4% premium over the closing price of SEK 48.60 per share on 17 September 2024, which was the last trading day prior to the announcement. By acquiring Fantasma Games, it would greatly increase the number of casino games  can offer to their online casino clients.

Additionally, it represents a 27.7% premium compared to the 30-day volume-weighted average price and a 33.4% premium over the 90-day average price of Fantasma’s shares.

EveryMatrix, is an iGaming and sports betting software provider that has been growing at a tremendous rate. As of late, it has broadened its content offerings through various partnerships, including a recent collaboration with game studio Peter & Sons, which has enhanced the range of titles available on its iGaming platform, CasinoEngine.

EveryMatrix Wants to Buy Fantasma Games and Fantasma Board likes the offer

The independent bid committee of Fantasma, which includes board members Antonia Svensson, Johan Styren, and Johan Köningslehner, has advised shareholders to accept the offer.

This recommendation is bolstered by a fairness opinion from financial advisors at Svalner Skatt & Transaktion KB, affirming that the offer is financially sound.

Significant shareholders, who collectively hold 50.79% of Fantasma’s shares, including Fredrik Johansson and KL Capital AB, have indicated their intention to accept the offer, subject to specific conditions. For the acquisition to proceed, EveryMatrix must secure over 90% of the shares.

The acceptance period for this offer is set to run from 19 September to 10 October 2024, although EveryMatrix retains the right to extend this timeframe. The finalization of the transaction is contingent upon regulatory approvals and other standard conditions.

Fantasma emphasizes the conditions of the market and listings

In its recommendation of the offer, Fantasma’s Independent Bid Committee emphasized several key factors that shaped their assessment.

The committee acknowledged the strength of the provider’s business model; however, it cautioned that an unpredictable macroeconomic environment has significantly impacted sentiment in the capital markets.

The committee remarked: “Investors are increasingly favoring larger companies with a diversified revenue stream over smaller enterprises that depend heavily on individual projects.”

Additionally, it observed that numerous Swedish and international financial institutions have opted to withdraw from the iGaming sector due to new internal ESG guidelines.

Consequently, the committee contended that access to institutional capital for iGaming firms listed in Sweden is likely to diminish.

This situation, it stated, would complicate the ability to finance operations effectively as a publicly traded entity, while the advantages of being listed remain minimal.

The committee also underscored EveryMatrix’s pledge to retain all employees in the event of a potential acquisition.

The acquiring company stated: “EveryMatrix does not plan to make any significant changes to Fantasma’s workforce or management team. Nor to the current organization and operations, including employment terms and the locations of Fantasma’s business activities.” For those looking to become a bookie and are considering using EveryMatrix, this acquisition would increase the gambling options they can use for heir sportsbook.

If the acquisition is sanctioned, it would mark the company’s second acquisition in 2024, following its all-cash acquisition of FSB Technologies in July.