Acquiring from Apricot

Super Group to secure full control of its sportsbook technology in $175 million deal

Neal Menashe, Chief Executive Officer of Super Group
Reading time 1:31 min

Super Group, the parent company of gaming brands Betway and Spin, has entered into an agreement to assume full control of its sportsbook software technology.

The agreement entails Super Group acquiring the sportsbook tech from its current partner, Apricot, in a transaction valued at €140 million ($175 million), plus additional amounts payable if certain earn-out conditions are achieved.

Neal Menashe, Chief Executive Officer of Super Group, said: "I’m delighted that we have now concluded terms for the sportsbook – we have been working closely to agree to an equitable deal with a favorable structure for both parties.

"This is an exceptional opportunity for Super Group to take full control of our sportsbook technology, which would enable maximum flexibility for organic growth as well as M&A opportunities. We’ll continue to deliver the best sports betting and gaming experience to our customers around the world as the benefits of this deal are realized."

The acquisition involves an initial payment of €100 million ($125 million), intended to settle an outstanding loan, followed by additional payments totaling €40 million ($50 million) over the next two years. These subsequent payments may include up to €20 million ($25 million) in ordinary shares of Super Group.

Moreover, the agreement includes provisions for potential additional payments of up to €210 million ($262 million) through a contingent earn-out mechanism if Super Group's sportsbook revenue more than doubles during the earn-out period which runs through December 31, 2035.

The closure of the deal is subject to obtaining supplemental licensing from relevant gambling regulators. Super Group anticipates securing these approvals within 6 to 12 months.

In addition to the sportsbook technology acquisition, Super Group has recently divested its non-core B2B arm of Digital Gaming Corporation (DGC) to Games Global

The company in March announced record revenue of €1.4 billion ($1.5 billion) for the full year 2023, surpassing guidance and including the highest-ever total revenue for a fourth quarter, reaching €359.9 million ($394.3 million).

However, the company reported a profit before tax of €16.8 million ($18.4 million) for the year (down from the €216.5m generated the year prior), and a loss before tax of €44.9 million for Q4, mainly due to non-cash charges arising from changes in the fair value of option liability and an impairment of goodwill.

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