piffbet has signed a letter of intent with the owners of Manisol Gaming Ltd to acquire the company. The ambition is to close the acquisition in February 2021 but is subject to due diligence and signing of a share transfer agreement.
Manisol operates casinos, mainly in Europe, via the same platform as Spiffbet under the main brands Scandibet and TurboVegas. Manisol is a well-established business with 10 employees in Malta.
The acquisition of Manisol increases Spiffbet's casino turnover by more than 50 percent, calculated from the outcome of the last few months for each of the companies. The acquired business is expected to be relatively easy to integrate as Manisol already operates on the same platforms as Spiffbet's other casino operations. There are also clear synergies to be gained in both organizations through the merger.
The purchase price is set to approximately EUR 2 million (SEK 20 million). In addition, Spiffbet takes over liabilities of EUR 1 million (SEK 10 million), which corresponds to a total initial purchase price on a debt-free basis of approximately EUR 3 million (SEK 30 million). An additional consideration of a maximum of EUR 600 thousand (SEK 6 million) will be paid at the latest on December 31, 2022, provided that certain growth targets are met. The share issue will be covered partly by major shareholders, several of whom are veterans in the igaming industry.
The main owner of Manisol is Johan Styren, while the remaining shares in Manisol are held by key employees. Styren led the Malta-based operations of Leovegas from 2012 to 2017. During that period Leovegas grew from being a startup to a highly successful and profitable casino operations to a company listed on Nasdaq Stockholm’s midcap list and from 5 to 500 employees. Since then, in parallel with Manisol, he has built up an affiliate business. Styren will act as a strategic advisor to Spiffbet's casino business going forward.
"It's great to find a harbor for Manisol in Spiffbet. They have both the financial muscles and the will to drive growth. Both our companies have a solid organization with complementary qualities that can harness each other's strengths. It will be inspiring to follow the business both as a major shareholder and strategic advisor in the future. We have already started our entry into new markets, both within the EU and outside, and with the additional resources we can speed up the pace”, says Johan Styren in a comment.
Manisol will be integrated into Spiffbet's casino operations, which is under the wings of Maria Boelius. "We welcome Manisol with all its employees. They will be a perfect reinforcement of our team and solve part of our recruitment needs. It is also an asset to have Johan Styren, with his solid industry experience, as a sounding board. At a stroke, our ability to grow and create profitability is immensely improved,” adds Maria Boelius.
"With this acquisition, Spiffbet reaches a critical mass and becomes a force to be reckoned with in the gaming industry. This also opens opportunities for larger acquisitions and strategic transactions in the future. Our ambition is to get the maximum effect on being listed on the stock exchange, our proven ability to carry out acquisitions and economies of scale that can be achieved because of the higher turnover. This transaction also reinforces the synergies between game production and our casino business. We will continue to act as the locomotive for acquisitions and catalysts for strategic transactions.", concludes Henrik Svensson, CEO of Spiffbet in a comment.