The proposed amalgamation of lottery firm Allwyn and special purpose acquisition company Cohn Robbins has been terminated.
Therefore, Allwyn will remain privately owned for the time being. Nevertheless, the organization maintains it is still “dedicated” to pursuing a public listing eventually.
Despite significant investor enthusiasm for the agreement, Allwyn clarified that prevailing market circumstances, including worries about inflation, interest rates, and a possible economic downturn, generated excessive unpredictability.
Investors had previously pledged nearly $700 million to back the merger.
Due to this choice, the lottery company will also delay its expansion ambitions in the U.S. until after any subsequent public offering.
Allwyn CEO, Robert Chvátal, stated:
“Allwyn was heartened by the favorable feedback from numerous prominent investors, demonstrating the allure of our enterprise to the investment community.
“However, considering the ongoing market volatility, we and Cohn Robbins have resolved not to move forward with the suggested business combination. We value the backing of the firm’s founders, Gary Cohn and Cliff Robbins, throughout the past year and anticipate a chance to collaborate with them once more down the line.”
Allwyn boasts an impressive history of achievement, underpinned by robust financial performance and operational efficiency. This foundation empowers them to seek expansion both internally and through strategic mergers, consistently exploring emerging prospects.
A notable illustration is their upcoming role as the operator of the UK National Lottery, slated to commence in 2024. They are dedicated to sustainable, lucrative growth and express enthusiasm for the numerous lottery prospects across Europe, the UK, the US, and beyond.
This assurance follows Allwyn’s official acquisition of the UK National Lottery license, a development that transpired after the resolution of legal disputes with the incumbent license holder, Camelot, and its technology partner, IGT, who ultimately retracted their legal action.
Gary D. Cohn and Clifton S. Robbins, Co-Founders of Cohn Robbins, remarked:
“Since formalizing our collaboration with Allwyn in January, we’ve observed a notable change in market sentiment. Just recently, the market underwent its most challenging day since June 2020, and this instability has persisted into the current week.
“Karel Komárek and his groups at KKCG and Allwyn have established a remarkable lottery-centric entertainment enterprise. Nevertheless, owing to the ongoing unfavorable market conditions, we have collectively resolved with Allwyn to forgo the transaction. We extend our best wishes for their future pursuits.”
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