In an all-stock transaction, BCS shareholders will receive an aggregate of $10 million of shares of company common stock, the companies said in a Thursday (Dec. 14) press release.
When the acquisition is completed, BCS, a provider of banking solutions for cashless gaming, will operate as a subsidiary of GBank, of which GBank Financial Holdings is the parent company, according to the release.
“We are excited to announce this transaction and are looking forward to expanding our existing relationship with BCS,” T. Ryan Sullivan, president and CEO of GBank Financial Holdings and GBank, said in the release. “The platform’s ability to generate fees and source noninterest bearing deposits in today’s interest rate environment is extremely valuable. Furthermore, BCS’s proprietary intellectual property and licensing opportunities can generate a significant upside for the company.”
The acquisition will enhance GBank’s Gaming FinTech Division, with BCS’s patented Pooled Player and Pooled Consumer Programs expanding cashless payment solutions to a growing network of gaming and payments partners and financial institutions, per the press release.
After completion of the transaction, BCS President Hanan Sabri will become president and chief operating officer of the new GBank subsidiary, the release said.
Subject to regulatory approval, company shareholder approval and other customary conditions, the transaction is expected to close in the second quarter of 2024, according to the release.
Sabri and Edward M. Nigro, the manager and CEO of BCS, founded BCS in 2014 and enabled GBank to participate in the launch of cashless gaming in Nevada, Nigro said in the release.
Since then, BCS has developed proprietary banking solutions for gaming patrons and payments users, Nigro said.
“This strategic decision shall afford GBank greater opportunity to harness BCS proprietary solutions including licensing our intellectual property to other financial institutions,” Nigro said in the release.
PYMNTS Intelligence has found that gamers face a variety of payout frictions, despite the widespread legalization of and growing interest in online sportsbooks and other gaming.