ased in Malta and offering online casino, poker and sportsbetting services to clients primarily based in Scandinavia, Betsafe increased revenues in 2010 by 119 % to 25.9 million euros while reporting twelve-month unaudited revenues to the end of last month of 33.4 million euros with an operating profit of 6.9 million euros.
Betsson revealed that it has paid an initial fee of 32.5 million euros, consisting of cash and shares to acquire Artic Invest AS, which is the holding company behind Betsafe, and could lay out an additional 27.5 million euros in cash or shares ‘based on the development of the acquisition and the integration thereof during 2011’.
“This deal will fuel our growth,” said Pontus Lindwall, Chief Executive Officer for Stockholm-based Betsson. “We strengthen our position in the Nordic region as well as our organisation when merging two profitable companies, each of which has proven its ability to gain market share in a highly competitive market environment.”
Betsafe has 148 employees and welcomed 84,000 real-money players in March with Betsson stating that the acquisition will also see it benefit from synergies resulting from the integration of platforms and supplier contracts.
“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 five to six times Betsafe's earnings before interest and tax for 2011,” read a statement from Betsson.
“This is an attractive solution for Betsafe as we share views with Betsson on how to become successful in the global gaming market,” said Henrik Persson, CEO for Betsafe.
“Two strong cultures with common values and goals are now joining with the aim of further developing the business and eventually becoming one of the largest and most profitable players in the market.”