Betsson AB will acquire Nordic Gaming Group (NGG), a private gaming company
based in Malta, owning the brands, NordicBet, Tobet and Triobet. NGG offers
gaming in the form of sportsbook, casino and poker to, primarily, Nordic and
Baltic customers. Through this acquisition, Betsson secures its position as the
largest private alternative to the Nordic monopolies. This acquisition will not
affect the previously communicated dividend proposal.
”Through this transaction, Betsson continues to strengthen its Nordic operations
and its leading position amongst the private gaming company alternatives in the
Nordic region. In addition, Betsson’s brand portfolio is strengthened
significantly within the betting segment, as NGG receives approximately fifty
percent of its revenues from sportsbook”, states Magnus Silfverberg, CEO and
President of Betsson. In 2011, NGG increased its revenues by 37 percent. During
the period 1 April 2011- 31 March 2012, revenues amounted to MEUR 50 and
operating income (EBIT) to MEUR 111. At the beginning of 2012, the number of
active depositing customers totaled 90,000 and the company has 185 employees. In
addition to the income contributed by NGG, it is deemed that
synergy effects
will be achieved, for example, through the integration of technology platforms
and of supplier agreements. As Betsson has a major recruitment need, management
believes that the synergies will primarily result in a welcomed injection of
qualified staff, which can be utilised within other parts of Betsson which are
currently undergoing a strong expansion. Betsson is acquiring NGG from a number
of individuals, including both the founders of the company, members of
management and employees, as well as from external investors. At closing of the
transaction, Betsson will pay a purchase price for the operations (enterprise
value) totalling MEUR 65, of which MEUR 5 will be paid either in the form of
Betsson shares at a historical 10 day average price or in cash, and the
remaining MEUR 60 will be paid in cash. The purchase price is equivalent to 5.9
times EBIT during the last 12 months (1 April 2011 – 31 March 2012). In addition
to the up-front purchase price, an additional purchase price, based on the
development of NGG during 2012, may become payable by Betsson. Such additional
purchase price, if any, will amount to a maximum of MEUR 20, which implies that
the total maximum purchase price is MEUR 85. 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 6-7 times NGG’s EBIT
for 2012. 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 has secured a two-year external financing of
the transaction, amounting to MSEK 500, which at the current base rate results
in an interest rate of approximately 4 percent. The facility will be fully
utilized at closing and will be amortised at an appropriate rate which considers
the company’s dividend policy.

”For NGG, this is an attractive solution as
the company can incorporate Betsson’s global strength into its operations and it
strengthens our possibilities to continue to grow rapidly and with good
profitability in the Nordic region, the Baltics and Poland. The two companies
have similar cultures, and we foresee a smooth integration, and we believe that
we can quickly benefit from each other’s strengths “, says Per Hellberg, CEO of
NGG.

Betsson invites to a press meeting today at 11.30 CET at Betsson’s
office, 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 11:30 a.m. (CET) (by audio, image and power point presentation) visit
www.betssonab.com or
http://storm.zoomvisionmamato.com/player/betsson/objects/htgz30cv/.

Carnegie
Investment Bank is the financial advisor to Betsson in conjunction with the
transaction and Gernandt & Danielsson Advokatbyrå is the legal advisor.
For further information, please contact Magnus Silfverberg, CEO and President,
telephone +46 (0)8 506 403 00 or+46 (0) 70 27 147 00,
magnus.silfverberg@betssonab.com
Betsson AB’s Core Business consists of investing and administering shareholding
in companies, which through partners or by themselves, offers games to the end
users via the internet. Betsson AB owns Betsson Malta which operates games
through partnerships and the websites www.betsson.com,
www.betsafe.com,  www.casinoeuro.com and www.cherrycasino.com. Betsson Malta
offers Poker, Casino, Sports betting, Scratch Cards, Bingo and Games. The
customers mainly originate from the Scandinavian countries and other parts of
Europe. Betsson AB is listed on NASDAQ OMX Nordic Mid Cap List, (BETS).