SBC News Voice of the Sports Betting Industry
European sports betting operator Betsson AB, has confirmed is acquisition of Georgia licensed betting operator Europe-Bet for a purchase price of $50 million (£31 million).
Detailing the acquisitions final terms, Betsson AB will pay Europe-Bet holding company Chempionebi an additional sum of $35 million upon completion of one year under its management, provided that Georgian gambling regulations remain unchanged. Should the additional terms be met, the total purchase value of Europe-Bet will be $85 million.
The acquisition has been financed through a renewal of a credit facility amounting to EUR 35 million, as well as a new credit facility of SEK 700 million. The facilities are both revolving credit facilities which give an attractive financial flexibility.
By completing the acquisition Betsson AB, gains Georgia’s second largest operator, with 30% of market share. Tbilisi based Europe-Bet has operated sports betting and igaming products for the Georgian market since 2010. In 2014 Europe-Bet recorded EBITDA earnings of approximately €18 million.
Betsson AB announced its initial interest in Europe-Bet in April, as outgoing company CEO Magnus Silfverberg outlined further corporate expansion away from Betsson core markets. Europe-Bet joins NordicBet, BetSafe, triobet and Betsson as a core group sports betting brand.
