SBC News Voice of the Sports Betting Industry
Mr Green has agreed to pay €7 million to acquire Redbet owner Evoke Gaming, with the deal expected to be completed in Q1 2018 subject to regulatory approval.
Evoke Gaming, who’s brands produced revenues of €15.5 million in 2016, includes the likes of Vinnarum casino, Bertolt, MamaMia and Redbet, a sportsbook, casino and poker provider which Mr Green intends to expand in both its existing and future markets.
Like Redbet, Vinnarum casino commands a solid position in the Nordic region with a high share of returning customers. Meanwhile, Bertil and MamaMia are bingo sites focused on the Swedish market.
Mr Green is acquiring all shares in Evoke Gaming from Bonnier Growth Media for €7 million, to be paid in cash, yet an additional €1.5 million may be payable if certain conditions are met.
The acquisition will not have any impact on Mr Green’s EBITDA for 2018. It will, however, have a marginally negative impact on cash flow for next year, but should contribute positively to EBIDTA and cash flow as of 2019, when Mr Green expects to start achieving annual synergies of €2.5 to €3.5 million.
Mr Green’s financial targets of an annual growth rate of 20% and an EBITDA margin of 20% by 2019 will be unaffected by the deal. On 30 September, Mr Green’s net cash amounted to SEK 567.6 million.
Per Norman, CEO of Mr Green & Co, said: “Evoke Gaming is an ideal fit for our business plan and strategy. We are pursuing our strategy of nurturing a small number of strong brands that can work globally. With Redbet and Mr Green, we have two immensely strong brands addressing different segments and we see major potential to expand Redbet into our existing markets.”
Fredrik Staël von Holstein is the CEO of Evoke Gaming, who will remain as head of the company’s operations after the transaction has been completed, and will become a member of Mr Green Ltd’s management team in Malta.
He commented: “Evoke Gaming is on the threshold of a significant turnaround. Mr Green will give us the muscles to continue growing internationally in an effective manner.”
