July 12, 2024

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GBank Acquires BankCard Services To Boost Cashless Gambling

2 min read
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GBank Financial Holdings has signed a merger agreement with BankCard Services, agreeing to conclude the all-stock transaction by buying $10 million worth of shares of the company. BCS will, after the completion of the merger, become a subsidiary of the bank.

Shares of company common stock were valued on October 27, 2023, with a closing price of $14.25 for every share.

BCS is a provider of cashless gaming financial solutions. Since its establishment in 2014, BCS has undertaken the development of proprietary banking solutions for all ecosystem partners. Its patented Pooled Player and Pooled Consumer Programs are two such solutions. The merger is anticipated to result in enhancements for both programs.

The merger transaction could close as early as the second quarter of 2024. It is subject to approval from shareholders and regulatory authorities. Also, it must meet all other customary conditions for the transaction to conclude seamlessly. Hanan Sabri, the President of BCS, will take over the position of Chief Operating Officer and President of the new subsidiary.

What makes BCS an ideal candidate for the merger is its ability to generate fees at a time when the market is in turmoil. It has also been able to source noninterest-bearing deposits. This has been termed extremely valuable, considering today’s interest rate environment is pretty solid.

A similar sentiment has been echoed by T. Ryan Sullivan, the Chief Executive Officer and President of GBank Financial Holdings and GBank. His statements from the press release reflect their excitement about the merger transaction and keenness to look forward to what the collaboration entails in the future.

Ryan has expressed confidence that the intellectual property and licensing opportunities of BCS will generate a significant upside for them.

Edward M. Nigro, the Manager and Chief Executive Officer of BCS, has said that the strategic association will enable GBank to harness the proprietary solutions of BCS. This includes licensing their IP to other financial institutions. On a similar line, expectations are that the merger will do wonders for the Gaming Fintech Division of GBank.

There is widespread interest in gaming and online sportsbooks; however, reports have highlighted that gamers continue to face friction with their payouts in today’s world. Given the option, gamers have shown a higher interest in receiving instant disbursements.

Meanwhile, Global Payments and Shift4 Payments are considering concluding terms and conditions for an acquisition deal. Global Payments would acquire the latter if the deal goes through. Notably, both parties are holding discussions, and there is no clarity that the deal will see the end of the tunnel.

GBank and BankCard Services are joining hands to fill the gap that the customers have been facing for a long time. The objective is to expand cashless gaming solutions. The all-stock merger deal will see the bank hold shares worth $10 million as BCS makes a transition to become a subsidiary of GBank.

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