BETSSON TO ACQUIRE TONYBET HOLDING COMPANY
08th September, 2016 at 15:48:13
Initial consideration of Euro 4 million agreed.
Betsson AB, an online gambling firm listed on Sweden's Stockholm exchange, announced Thursday that it has agreed to acquire the privately owned gaming operator Lošimų strateginė grupė, UAB, trading as TonyBet in Lithuania.
TonyBet is the second largest licensed online operator in Lithuania, and through the acquisition the Betsson Group will strengthen its foothold in the Baltic region with licenses in Estonia, Latvia and Lithuania, the company said in a press statement.
TonyBet currently offers its customers primarily online sportsbook services and a network of more than 20 betting shops in Lithuania.
"We see strong synergies in this acquisition, through migration of the operator to Betsson's technical platform, and development of the casino offering." said Ulrik Bengtsson, CEO and president of Betsson AB.
The acquisition of Lošimų strateginė grupė, UAB, is being executed through wholly owned subsidiaries and it is expected that the deal will close within the next month.
The initial acquisition consideration is Euro 4 million, payable in cash on completion.
In the six month period to 30 June 2016, the revenue of Lošimų strateginė grupė, UAB was Euro 3 million and the adjusted EBIT was Euro 0.55 million. On an annualised basis, the transaction multiple is around 3.6x 2016 EBIT.
The sellers are eligible to receive a further Euro 2 million performance bonus in 2017 subject to achieving certain milestones, bringing the total consideration to a maximum 7.25x adjusted annualised EBIT for 2016.
"This acquisition is a good strategic fit for Betsson Group as Betsson's ambition is to increase revenue from locally regulated markets. We have now consolidated our presence in the Baltic region by ensuring local licenses in all three markets, and continue to pursue growth across Europe, organically and through acquisition", Bengtsson concluded.
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