SBC News Betsson boosts Baltic arm with TonyBet Lithuania acquisition

Betsson boosts Baltic arm with TonyBet Lithuania acquisition

Ulrik

Stockholm-listed Betsson AB has confirmed that it has entered a binding agreement to acquire Lithuanian betting operator Lošimų Strateginė Grupė, holding company of betting brand TonyBet’s Lithuanian business.

Updating the market, Betsson governance detailed that it had acquired Tonybet Lithuanian assets for an initial consideration of €4 million, representing a 3.6x multiple on the acquired firms 2016 to-date EBIT of €550,000.

Further deal caveats have seen Betsson attach a €2 million performance-based bonus, on assets milestones set for 2017.

Betsson governance detailed that the acquisition would strengthen the its multi-brand European growth strategy, with the company gaining a stronger foothold in the licensed Baltic markets of Estonia, Latvia and Lithuania.

“We see strong synergies in this acquisition, through migration of the operator to Betsson’s technical platform, and development of the casino offering.” commented Ulrik Bengtsson, CEO and President of Betsson AB.

Founded by Lithuanian businessman Antanas ‘Tony G’ Guoga, Tonybet is one of two gambling operators allowed to service the Lithuania market. The firm currently has a Lithuanian network of 20 betting shops and a licensed website servicing online casino, poker and sportsbook.

“This acquisition is a good strategic fit for Betsson Group as Betsson’s ambition is to increase revenue from locally regulated markets. We have now consolidated our presence in the Baltic region by ensuring local licenses in all three markets, and continue to pursue growth across Europe, organically and through acquisition” Ulrik Bengtsson would further add.

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