etsson AB’s subsidiary SW Nordic announced Wednesday the acquisition of Inkabet’s B2C online gambling business, a sportsbook and casino targeting the western region of South America, through which Betsson intends to strengthen its presence in the LatAm region.
SW Nordic will get the business activities, operations and all related assets used for operating the brand Inkabet. The initial consideration of the acquisition is $25 million. Betsson will also pay up to $4 million depending on the performance of Inkabet in reaching the agreed revenue and EBIT targets during the 6 months following the closing. The company will also pay a deferred $5 million —$3 million on December 31st, 2022; and $2 million on December 31st, 2023.
Completion of the transaction is expected to occur in 30 days from signing. Certain restructuring activities are also a condition for closing.
The full purchase is the equivalent of 3.8 times EBIT of the last 12 months, ending June 2021. Financing of the acquisition will be done through Betsson’s revolving credit facility, which provides financial flexibility for deals of this kind.
Betsson AB’s CEO, Pontus Lindwall, spoke in a press release about the purchase and said: “Through this transaction, Betsson continues to build market share in the LatAm region, following the previous acquisitions of JDP Tech, Suaposta and Colbet. This strengthens our position in a strategically important region where we have performed well and have big ambitions for the future”.