Betsson acquires online gaming operator Betsafe‎ | Yogonet International
It intends to retain all staff of Betsafe as well as all the brands of both firms

Betsson acquires online gaming operator Betsafe‎

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“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 %, and during the period 1 May 2010 – 30 April 2011, revenues amounted to 33.4 million euros and operating profit (EBIT) amounted to 6.9 million euros. 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 32.5 million euros, 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 27.5 million euros, which implies that the total maximum purchase price is 60 million euros. 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.

The firm 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.

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