GBank Financial Holdings has officially announced its plans to merge with BankCard Services in a multi-million dollar, all-stock transaction. The agreement, which is set to be finalized in the second quarter of 2024, will involve the acquisition of $10 million worth of shares of BCS by GBank. Once the merger is complete, BCS will operate as a subsidiary of the bank.
On October 27, 2023, the common stock of BCS was valued at a closing price of $14.25 per share. BCS, established in 2014, specializes in providing cashless gaming financial solutions. The company has developed proprietary banking solutions for its ecosystem partners, including the patented Pooled Player and Pooled Consumer Programs. The merger is expected to lead to improvements for both programs.
Hanan Sabri, the President of BCS, will assume the role of Chief Operating Officer and President of the newly formed subsidiary following the completion of the merger. The transaction is subject to approval from shareholders and regulatory authorities, as well as meeting all customary conditions for completion.
What makes BCS an attractive candidate for the merger is its ability to generate fees and source noninterest-bearing deposits in a tumultuous market. T. Ryan Sullivan, the CEO and President of GBank, expressed excitement about the merger and the potential for future collaboration. He also expressed confidence in BCS’s intellectual property and licensing opportunities to bring significant benefits to GBank.
Edward M. Nigro, the CEO of BCS, emphasized that the strategic association with GBank will allow for the exploitation of BCS’s proprietary solutions, including licensing their IP to other financial institutions. It is anticipated that the merger will greatly benefit the Gaming Fintech Division of GBank.
The move comes at a time of growing interest in gaming and online sportsbooks, as gamers continue to face challenges with timely payouts. GBank and BCS aim to address this issue by expanding cashless gaming solutions through their merger.
In another industry development, Global Payments and Shift4 Payments are in discussions regarding a potential acquisition deal, with the former looking to acquire the latter. However, the outcome of these discussions remains uncertain.
Overall, the merger between GBank and BankCard Services represents a strategic move to address the challenges faced by customers in the gaming industry and to expand cashless gaming solutions. Upon completion, GBank will hold shares worth $10 million as BCS transitions to become a subsidiary of the bank.