GBank Financial Holdings and BankCard Services (BCS) have announced that they have managed to reach a final merger agreement.
As part of the specified arrangement, the financial institution becomes the owner of the BCS. This transaction provides that the shareholders of the company, which will be absorbed by GBank Financial Holdings, will receive a total of $10 million of common BCS securities. The relevant information is contained in the joint press release of the parties to the agreement, which was published last Thursday, December 14.
BCS is a provider of banking-related solutions for non-cash payment of digital products and access to them in the sphere of video games. After the transaction is completed, this company will continue to operate as a subsidiary of GBank Financial Holdings. The relevant information is contained in the press release.
T. Ryan Sullivan, President and CEO of GBank Financial Holdings and GBank, says that the organizations he heads are pleased to announce the deal’s implementation and look forward to expanding the scope of existing relations with BCS. According to him, the partner’s platform, which will be absorbed shortly, that can generate fees and place interest-free deposits, is extremely valuable in the current economic realities due to the level of interest rates. He also noted that BCS’s proprietary intellectual property and licensing capabilities can provide significant growth for the company.
The press release contains a statement that the implementation of the deal will strengthen GBank’s gaming fintech unit. Special attention is also drawn to the fact that the Pooled Player and Pooled Consumer programs, which BCS patented, will expand the possibilities of making non-cash payment transactions for a growing network of partners, including companies from the gaming sphere, providers of solutions for transferring money from one account to another and firms from the financial services sector.
After the deal is implemented, BCS President Hanan Sabri will take over the position of President and Chief Operating Officer of the new GBank subsidiary.
The press release indicates that the merger and acquisition process will be finalized in the second quarter of next year, subject to regulatory permissions, shareholder approval, and other favorable conditions.
Hanan Sabri and Edward M. Nigro, manager and CEO of BCS, founded this company in 2014. Cooperation with this firm allowed GBank to participate in the process of launching cashless games in Nevada. Since then, BCS has developed solutions to launch banking mechanisms in the gambling sphere and offers for users of payment systems.
Edward M. Nigro says that the deal is a strategically important step that will allow GBank to gain new opportunities to use the products of the company he founded, including the licensing of intellectual property to other firms.
Industry research indicates that gamers continue to face difficulties in making payment transactions. A noteworthy circumstance is that this state of affairs is observed during the period of active legalization of the gaming industry and the growing interest in betting companies operating in the virtual space.
As we have reported earlier, UBank and Aeropay to Provide Financial Services for Gaming Industry.