Stockholm-listed European sports betting group Betsson AB has confirmed that it has agreed to acquire racing specialist bookmaker RaceBets (racebets.com) for an initial cash consideration of €34 million.
Updating investors, Betsson governance detailed that it would acquire all RaceBets assets including the firm’s trading team, adding the UK, Ireland, Malta and Germany licensed bookmaker to its portfolio of European brands.
Detailing its purchase, Betsson revealed that the accounting revenue of RaceBets in 2015 was €9.3 million and adjusted EBIT was €3.36 million, with an annual growth rate 2013-2015 of 12%.
Betsson governance detailed that it had agreed to cap the acquisition at €40 million, with €6 million attached in performance incentive for its new asset.
The group acquires RaceBets from the company’s founders and the German Thoroughbred Racing Association, with Betsson leadership detailing that the acquisition would boost the value of its portfolio by strengthening its positions within the €3.5 billion European racing market.
Ulrik Bengtsson, CEO and President of Betsson AB backed the RaceBets deal stating;
“Horse racing is important in many of our markets and the key rationale of the acquisition of RaceBets is to enable our subsidiaries to accelerate the launch of a world class horse racing product on all core brands. This will help fuel organic growth in strategic markets such as the UK and Germany