Sweden’s Betsson has completed the acquisition of Nordic Gaming Group (NGG) following receipt of necessary regulatory approvals.
Betsson has acquired all shares in NGG’s holding company Transvectio Ltd by payment of a consideration of approximately €65m, consisting partly of cash and partly of a new issue of 217,974 shares of series B shares.
An additional purchase price based on the development of the acquisition during 2012 may also become payable - which can be paid by Betsson in cash or in own shares - and is capped at a maximum of €20m.
Following authorisation from the company’s annual shareholders' meeting on May 11th, Betsson’s board of directors has resolved to issue no more than 217,974 new B Shares against subscription in kind.
As a result, the share capital of Betsson will increase by SEK435,948, from SEK84,002,418 to SEK84,438,366.
Trading in the new shares is expected to commence on NASDAQ OMX Stockholm on or about June 21st.
As a result of the issue in kind, the number of shares in Betsson will increase from 42,001,209 (5,420,000 shares of series A and 36 581 209 B Shares) to 42,219,183 (5,420,000 shares of series A and 36,799,183 B Shares). The number of votes in Betsson will increase from 90,781,209 to 90,999,183.
Betsson added that the acquisition has been partly financed through loan financing in the amount of approximately €55m. The facility will be repaid at an appropriate rate which considers the company's dividend policy.
The acquisition of Nordic Gaming Group, owner of the NordicBet, Tobet and Triobet brands, will strengthen Betsson’s Nordic operations, in particular within the sports betting segment where approximately 50 per cent of NGG’s revenues are generated by the sportsbook.
Showing posts with label NordicBet. Show all posts
Showing posts with label NordicBet. Show all posts
June 21, 2012
April 18, 2012
Betsson to acquire Nordic Gaming Group
Betsson AB will acquire Nordic Gaming Group (NGG), a private gaming company based in Malta, owning the brands, NordicBet, Tobet and Triobet. NGG offers gaming in the form of sportsbook, casino and poker to, primarily, Nordic and Baltic customers. Through this acquisition, Betsson secures its position as the largest private alternative to the Nordic monopolies. This acquisition will not affect the previously communicated dividend proposal.
"Through this transaction, Betsson continues to strengthen its Nordic operations and its leading position amongst the private gaming company alternatives in the Nordic region. In addition, Betsson's brand portfolio is strengthened significantly within the betting segment, as NGG receives approximately fifty percent of its revenues from sportsbook", states Magnus Silfverberg, CEO and President of Betsson. In 2011, NGG increased its revenues by 37 percent. During the period 1 April 2011- 31 March 2012, revenues amounted to MEUR 50 and operating income (EBIT) to MEUR 111. At the beginning of 2012, the number of active depositing customers totaled 90,000 and the company has 185 employees. In addition to the income contributed by NGG, it is deemed that synergy effects will be achieved, for example, through the integration of technology platforms and of supplier agreements. As Betsson has a major recruitment need, management believes that the synergies will primarily result in a welcomed injection of qualified staff, which can be utilised within other parts of Betsson which are currently undergoing a strong expansion. Betsson is acquiring NGG from a number of individuals, including both the founders of the company, members of management and employees, as well as from external investors. At closing of the transaction, Betsson will pay a purchase price for the operations (enterprise value) totalling MEUR 65, of which MEUR 5 will be paid either in the form of Betsson shares at a historical 10 day average price or in cash, and the remaining MEUR 60 will be paid in cash. The purchase price is equivalent to 5.9 times EBIT during the last 12 months (1 April 2011 - 31 March 2012). In addition to the up-front purchase price, an additional purchase price, based on the development of NGG during 2012, may become payable by Betsson. Such additional purchase price, if any, will amount to a maximum of MEUR 20, which implies that the total maximum purchase price is MEUR 85. If the outcome of the acquisition results in the full additional purchase price becoming payable, the total purchase price is expected to correspond to approximately 6-7 times NGG's EBIT for 2012. Betsson is entitled to choose to pay any additional purchase price in cash or in Betsson B shares, based on the share price prevailing at the time of such payment. Completion of the transaction is conditional upon customary regulatory approvals.
Betsson has secured a two-year external financing of the transaction, amounting to MSEK 500, which at the current base rate results in an interest rate of approximately 4 percent. The facility will be fully utilized at closing and will be amortised at an appropriate rate which considers the company's dividend policy.
"For NGG, this is an attractive solution as the company can incorporate Betsson's global strength into its operations and it strengthens our possibilities to continue to grow rapidly and with good profitability in the Nordic region, the Baltics and Poland. The two companies have similar cultures, and we foresee a smooth integration, and we believe that we can quickly benefit from each other's strengths ", says Per Hellberg, CEO of NGG.
"Through this transaction, Betsson continues to strengthen its Nordic operations and its leading position amongst the private gaming company alternatives in the Nordic region. In addition, Betsson's brand portfolio is strengthened significantly within the betting segment, as NGG receives approximately fifty percent of its revenues from sportsbook", states Magnus Silfverberg, CEO and President of Betsson. In 2011, NGG increased its revenues by 37 percent. During the period 1 April 2011- 31 March 2012, revenues amounted to MEUR 50 and operating income (EBIT) to MEUR 111. At the beginning of 2012, the number of active depositing customers totaled 90,000 and the company has 185 employees. In addition to the income contributed by NGG, it is deemed that synergy effects will be achieved, for example, through the integration of technology platforms and of supplier agreements. As Betsson has a major recruitment need, management believes that the synergies will primarily result in a welcomed injection of qualified staff, which can be utilised within other parts of Betsson which are currently undergoing a strong expansion. Betsson is acquiring NGG from a number of individuals, including both the founders of the company, members of management and employees, as well as from external investors. At closing of the transaction, Betsson will pay a purchase price for the operations (enterprise value) totalling MEUR 65, of which MEUR 5 will be paid either in the form of Betsson shares at a historical 10 day average price or in cash, and the remaining MEUR 60 will be paid in cash. The purchase price is equivalent to 5.9 times EBIT during the last 12 months (1 April 2011 - 31 March 2012). In addition to the up-front purchase price, an additional purchase price, based on the development of NGG during 2012, may become payable by Betsson. Such additional purchase price, if any, will amount to a maximum of MEUR 20, which implies that the total maximum purchase price is MEUR 85. If the outcome of the acquisition results in the full additional purchase price becoming payable, the total purchase price is expected to correspond to approximately 6-7 times NGG's EBIT for 2012. Betsson is entitled to choose to pay any additional purchase price in cash or in Betsson B shares, based on the share price prevailing at the time of such payment. Completion of the transaction is conditional upon customary regulatory approvals.
Betsson has secured a two-year external financing of the transaction, amounting to MSEK 500, which at the current base rate results in an interest rate of approximately 4 percent. The facility will be fully utilized at closing and will be amortised at an appropriate rate which considers the company's dividend policy.
"For NGG, this is an attractive solution as the company can incorporate Betsson's global strength into its operations and it strengthens our possibilities to continue to grow rapidly and with good profitability in the Nordic region, the Baltics and Poland. The two companies have similar cultures, and we foresee a smooth integration, and we believe that we can quickly benefit from each other's strengths ", says Per Hellberg, CEO of NGG.
October 30, 2010
Nordic Gaming Group to offer pool betting via Kambi
Unibet’s B2B sportsbook business Kambi Sports Solutions has signed a two-year agreement to provide the company’s online pool betting products to Nordicbet, Triobet and Tobet – the gaming sites operated by Nordic Gaming Group.
Kambi will provide Supertoto and Superscore pool betting products to all three gaming sites, who will join Paf, Expekt and Unibet in creating a joint pools offering.
“We are proud that NordicBet, one of the premium brands in the Nordics has chosen Kambi´s pool betting product,” said Kristian Nylén, newly appointed CEO of Kambi Sports Solutions. “The agreement is an important stepping stone to consolidate our position as the market leader in pool betting for international gaming operators.”
Supertoto is offered through a number of weekly coupons where the objective is to predict the correct outcomes in selected matches. The main weekend coupon, Supertoto14, consists of 14 matches from the top European leagues. Supertoto14 pays out on 11 or more correctly predicted matches.
Superscore consists of 2-4 matches where the objective is to predict the correct scores in the selected matches.
“We regard Supertoto and Superscore as excellent complements to our existing product portfolio, which we think our customers will appreciate,” said Kari Luukkonen, head of sportsbook for Nordic Gaming Group.
Kambi will provide Supertoto and Superscore pool betting products to all three gaming sites, who will join Paf, Expekt and Unibet in creating a joint pools offering.
“We are proud that NordicBet, one of the premium brands in the Nordics has chosen Kambi´s pool betting product,” said Kristian Nylén, newly appointed CEO of Kambi Sports Solutions. “The agreement is an important stepping stone to consolidate our position as the market leader in pool betting for international gaming operators.”
Supertoto is offered through a number of weekly coupons where the objective is to predict the correct outcomes in selected matches. The main weekend coupon, Supertoto14, consists of 14 matches from the top European leagues. Supertoto14 pays out on 11 or more correctly predicted matches.
Superscore consists of 2-4 matches where the objective is to predict the correct scores in the selected matches.
“We regard Supertoto and Superscore as excellent complements to our existing product portfolio, which we think our customers will appreciate,” said Kari Luukkonen, head of sportsbook for Nordic Gaming Group.
October 15, 2008
Mangas Capital to acquire NordicBet
Mangas Capital Gaming, the investment firm that acquired a 75% stake in sports betting operator Betclick earlier this year, is in contact with NordicBet with a view to acquiring a majority stake in the Scandinavian-focused site.
According to French media, Mangas Capital chief executive Stéphane Courbit is in exclusive negotiations with the management of NordicBet with a view to completing the acquisition by the end of the year. Once the NordicBet acquisition is completed, Courbit is believed to have his eyes on another European listed operator.
The acquisition of NordicBet, which is strong in Scandinavia and the Baltic countries, would be the second such transaction by Courbit’s company and would complement the geographic reach provided by Betclick, which has a strong presence in France, Italy and Spain.
Courbit is pursuing his strategy of creating a strong European-wide network of sports betting operations capable of taking advantage of online betting regulation on the Continent. With strong links to media organisations throughout Europe through his past role as chief executive of Endemol France, Courbit plans to be at the forefront of the industry once it is allowed to operate in European markets.
According to French media, Mangas Capital chief executive Stéphane Courbit is in exclusive negotiations with the management of NordicBet with a view to completing the acquisition by the end of the year. Once the NordicBet acquisition is completed, Courbit is believed to have his eyes on another European listed operator.
The acquisition of NordicBet, which is strong in Scandinavia and the Baltic countries, would be the second such transaction by Courbit’s company and would complement the geographic reach provided by Betclick, which has a strong presence in France, Italy and Spain.
Courbit is pursuing his strategy of creating a strong European-wide network of sports betting operations capable of taking advantage of online betting regulation on the Continent. With strong links to media organisations throughout Europe through his past role as chief executive of Endemol France, Courbit plans to be at the forefront of the industry once it is allowed to operate in European markets.
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