Rank Group Plc · LSE:RNK
Rank — The Rank Group — Merger or Acquisition (May 2019)
14 slides from Rank's merger presentation, May 31, 2019
Slide 1: Recommended Cash Offer for Stride Gaming Plc
RECOMMENDED CASH OFFER FOR STRIDE GAMING PLC 31 MAY 2019
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE This presentation may not be, in whole or in part, by any medium or any form, distributed, copied, reproduced, published, disclosed or passed in any way to any other person without the consent of The Rank Group Plc ("Rank"). This presentation (including any accompanying o
Slide 3: Agenda
Agenda 1 Transaction Overview 2 Transaction Rationale 3 Expected Timetable To Closing 3 RECOMMENDED CASH OFFER FOR STRIDE GAMING PLC
Slide 4: Transaction Overview
Transaction Overview • Purchase price of 151 pence for each Stride Gaming Plc (“Stride") share Purchase Price • Offer values Stride equity at £115.3m on a fully-diluted basis, implying an Enterprise Value of £93.4m • At least £13m pre-tax annual cost synergies, with costs to achieve of approximately
Slide 5: Overview of Stride
Overview of Stride Key Proprietary Platform Brands • Established scale player in the highly regulated UK soft gaming market − Provides B2C services through a portfolio of 150 online brands, 14 of Bingo which are operated on Stride's proprietary platform − Provides B2B services licensing its propriet
Slide 6: Compelling Strategic Rationale
Compelling Strategic Rationale Highly Complementary Migration to Stride's Strengthens Existing Attractive Financial Businesses Creating a Proprietary Technology Digital Leadership Profile with Strong Leading Multi-Channel Platform Increasing Team Operational and Operator with Genuine Operational Con
Slide 7: Creating a Leading Operator with Genuine Digital Scale
Creating a Leading Operator with Genuine Digital Scale Highly Complementary Businesses Creating a Leading Multi-channel Operator LTM NGR Mix(2) • Adds scale to Rank’s existing Digital business with pro-forma digital net gaming revenues of approximately £185m before any revenue synergies £107m 16% Hi
Slide 8: Adds Genuine Scale in Online Gaming
Adds Genuine Scale in Online Gaming Highly Complementary Businesses Creates Creating #2 Online Bingo Business a In Leading The UK(1) Multi-channel Operator Creates #6 Online Gaming Business In The UK(1) 14% 13% Others 13% Highly 22% 22% 13% Complementary 9% Businesses Creating a 4% Leading Multi- 3%
Slide 9: Increased Operational Control and Technology Capabilities
Increased Operational Control and Technology Capabilities • Migration of existing Grosvenor and Mecca digital operations onto Stride's proprietary technology platform within two years Migration to Stride's • Ownership of technology platform increases operational flexibility and reduces dependency on
Slide 10: Successful Entrepreneurial Management Team
Successful Entrepreneurial Management Team • Stride’s Senior Leadership team led by Eitan Boyd and Darren Sims, who will join Rank as Managing Director Digital and Operations Director Strengthen Existing Digital, will be responsible for the Digital Leadership technology platform migration and Team l
Slide 11: Attractive Synergy Potential
Attractive Synergy Potential • At least £13m pre-tax annual cost synergies. Run-rate synergies delivered fully by the third year following completion: − Technology efficiencies from migration to Stride platform and Stride's digital development and operational expertise Attractive Financial − Managem
Slide 12: Earnings Accretive With Continued Financial Flexibility
Earnings Accretive With Continued Financial Flexibility Earnings • Expected to be EPS accretive in the first year following completion Attractive Financial Profile • Net Debt / EBITDA not expected to exceed 1.0x in first year following completion; business is Earnings Accretive highly cash generativ
Slide 13: Expected Timetable To Closing
Expected Timetable To Closing June 2019 • Scheme document posted to Stride shareholders July 2019 • Stride shareholder vote Q3 2019 • UK Gambling Commission and Alderney Gambling Control Commission approval Q3 2019 • Closing of the transaction 13 RECOMMENDED CASH OFFER FOR STRIDE GAMING PLC
Slide 14: Q&A
Q&A 14 RECOMMENDED CASH OFFER FOR STRIDE GAMING PLC