BETSSON ACQUIRES BETSAFE
Betsson AB acquires Betsafe, a private gaming company based on Malta,
offering sports betting, casino and poker to clients primarily in the
Nordic countries. Through the acquisition, Betsson strengthens its
platform in the Nordic region, which creates a strong base for future
growth.
“This deal will fuel our growth. We strengthen our position in the
Nordic region as well as our organization when merging two profitable
companies, each of which has proven its ability to gain market share in
a highly competitive market environment”, says Pontus Lindwall, CEO of
Betsson.
In 2010, Betsafe increased its revenues with 119 per cent, and during
the period
1 May 2010 - 30 April 2011, revenues amounted to EUR 33.4 million and
operating profit (EBIT) amounted to EUR 6.9 million. During March 2011,
the number of real money players amounted to 84,000 and the number of
employees was 148. In addition to incremental earnings, Betsson believes
that it will benefit from synergies that will materialize as the result
of e.g. integration of platforms and supplier contracts.
Betsson acquires Betsafe from a number of private individuals, some of
whom are founders and employees. Betsson pays an up-front purchase price
of EUR 32.5 million, of which around half is payable in cash and the
other half in Betsson B shares based on a historical 30 day average
price of the Betsson share. The up-front purchase price consequently
corresponds to 4.7 times EBIT during the last 12 months. In addition to
the up-front purchase price, an additional purchase price, based on the
development of the acquisition and the integration thereof during 2011,
may become payable by Betsson. Such additional purchase price, if any,
will amount to a maximum of EUR 27.5 million, which implies that the
total maximum purchase price is EUR 60 million. If the outcome of the
acquisition results in the full additional purchase price becoming
payable, the total purchase price is expected to correspond to
approximately 5-6 times Betsafe's EBIT for 2011. Betsson is entitled to
choose to pay any additional purchase price in cash or in Betsson B
shares, based on the share price prevailing at the time of such payment.
Completion of the transaction is conditional upon customary regulatory
approvals.
Betsson intends to retain all staff of Betsafe as well as all the brands
of both companies. Betsafe's management, including the founders André
and Christer Lavold and the CEO Henrik Persson, will become part of the
Betsson operational management team in Malta.
”This is an attractive solution for Betsafe as we share views with
Betsson on how to become successful on the global gaming market. Two
strong cultures, with common values and goals, now join forces with the
aim to further develop the business and eventually become one of the
largest and most profitable players in the market” says Henrik Persson,
CEO of Betsafe.
Unaudited financial information and key ratios for the Betsafe-Group
(EUR millions)
2009 2010 1 May
2010 -
30 April
2011
Revenues[1] (https://connect.ne.cision.com/#_ftn1) 11.8 25.9 33.4
EBITDA 1.3 4.5 7.6
EBIT 1.2 4.0 6.9
Betsson invites to a press meeting today at 10.30 CET at Betsson's
offices, Regeringsgatan 28, Stockholm.
To participate by phone please call: +46 (0)8 505 598 53 (Sweden) or +44
(0)203 043 24 36 (UK).
To participate by Webcast at 10:30 a.m. (CET) (by audio, image and power
point presentation) visit www.betssonab.com (http://www.betssonab.com/)
or
http://storm.zoomvisionmamato.com/player/betsson/objects/c8ngr974 (http:
//storm.zoomvisionmamato.com/player/betsson/objects/c8ngr974)
Carnegie Investment Bank acts as financial adviser to Betsson in
connection with the transaction and Gernandt & Danielsson Advokatbyrå
acts as legal advisers.
For further information, please contact
Pontus Lindwall, CEO Betsson AB (publ)
mail: pontus.lindwall@betsson.com
tel: +46708275155
[1] (https://connect.ne.cision.com/#_ftnref1) Adjusted for comparison
based on the accounting principles applied by Betsson
