Betsson will acquire Nordic Gaming Group, a private gaming company based in Malta and owner of NordicBet, Tobet and Triobet.
"Through this transaction, Betsson continues to strengthen its Nordic operations and its leading position among the private gaming company alternatives in the region. In addition, Betsson's brand portfolio is strengthened significantly within the betting segment, as NGG receives approximately 50 per cent of its revenues from sportsbook," said Magnus Silfverberg, CEO and president of Betsson.
Betsson will pay an initial purchase price of €65m to acquire NGG, with €60m paid in cash and the remaining €5m paid either in the form of Betsson shares at a historical 10-day average price or in cash.
In 2011, NGG increased its revenues by 37 per cent. During the period April 1, 2011 to March 31, 2012, revenues amounted to €50m and operating income (EBIT) to €111m. 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 welcome injection of qualified staff, which can be utilised within other parts of the company, which is currently undergoing a strong expansion.
"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. We foresee a smooth integration and we believe that we can quickly benefit from each other's strengths," said Per Hellberg, CEO of NGG.
