GVC acquires majority stake in Georgia's leading operator Crystalbet

GVC Holdings has bought a 51 stake in the company behind Crystalbet, one of the leading online gaming operators in the Republic of Georgia.

"When we were looking for a strategic acquirer to take Crystalbet to the next level, GVC was very much our first choice," said Koba Giglemiani, the CEO of Crystalbet.

The consideration for the 51% stake is €41.3mln (USD 50 M); the London-listed sports betting and gaming group has made a commitment to buy the rest of Crystalbet in 2021, either for €150mln (185 USD M) or seven times Crystalbet’s adjusted underlying earnings in 2020, whichever is the lower.

GVC's management believes that Crystalbet operates the largest online sportsbook, and is the second largest online gaming brand overall, in the Republic of Georgia.

In 2017, Crystalbet’s revenues were 102.9mln Georgian lari (GEL), roughly equivalent to USD 42 M; underlying earnings (Ebitda) were GEL36.5mln (USD 15 M) and profit after tax clocked in at GEL30.8mln (USD 12 M).

At the end of 2017, Crystalbet had gross assets of GEL24.9mln (USD 10 M).

"Through access to GVC's content, technology and digital marketing skills, we believe Crystalbet can become a clear leader in the regulated Georgian market. This acquisition is in line with our stated strategy of being a truly global player, with a focus on regulated/regulating markets," said Kenneth Alexander, the chief executive officer of GVC.

Shares in GVC were down 1.3% at 861.5p in a rising market in the first hour of trading.