In connection with the acquisition of Nordic Gaming Group (NGG) 2012, Betsson reserved the maximum earn-out amount of EUR 20 million. Betsson and the seller of NGG has thereafter legally disputed the earn-out amount. Betsson has now agreed with the seller of NGG regarding the payment of the final earn-out. The agreement means that Betsson will pay EUR 15.45 million and that there are no additional requirements for transfers of interest or earn-out from Betsson.
This agreement means that Betsson will have a cash flow impact of SEK -147.1 million, but also that Betsson will have a positive profit impact amounting to approximately SEK 40 million in the fourth quarter of 2014. According to Betsson's dividend policy, 75 percent of earnings is transferred annually to shareholders through an automatic redemption process. The positive profit effect will not be included in the calculation of net distributions to shareholders.
Furthermore, there is no reason for revaluation of the goodwill recorded on the acquisition of NGG.
For further information, please contact:
Magnus Silfverberg, CEO and President Betsson AB (publ), phone: +46 (0)8 506 403 00 or magnus.silfverberg@betssonab.com.
