Brief: Betsson Acquires Gaming Innovation Group's B2C Business

Betsson AB

14/02/2020 07:23

Feb 14 (Reuters) - Betsson AB  BETSb.ST :
    * BETSSON ACQUIRES GAMING INNOVATION GROUP'S B2C BUSINESS
    * ACQUIRES GAMING INNOVATION GROUP'S (GIG) BUSINESS TO
CONSUMER
(BC2) OPERATIONS
    * RIZK BRAND WILL SOON BE LAUNCHED UNDER LICENSES HELD IN
SPAIN
AND CROATIA.
    * BRANDS OPERATE UNDER LICENSES HELD IN MALTA, UK, SWEDEN
AND
GERMANY (SCHLESWIG-HOLSTEIN).
    * TRANSACTION IS CONDITIONAL UPON CUSTOMARY REGULATORY
APPROVALS.
COMPLETION OF DEAL IS EXPECTED IN MID-APRIL 2020
    * REVENUE OF ACQUIRED BUSINESS IN 2019 WAS EUR 77 MILLION,
AND
EBIT WAS EUR 7.6 MILLION.
    * REVENUE OF ACQUIRED BUSINESS IN 2019 WAS EUR 77 MILLION,
AND
EBIT WAS EUR 7.6 MILLION.
    * INITIAL CONSIDERATION OF ACQUISITION IS EUR 22.3 MILLION,
WHICH
CORRESPONDS TO 2.9 TIMES EBIT IN 2019.
    * TRANSACTION IS CONDITIONAL UPON CUSTOMARY REGULATORY
APPROVALS.
COMPLETION OF DEAL IS EXPECTED IN MID-APRIL 2020.
    * FINANCING OF ACQUISITION IS DONE THROUGH BETSSON'S
REVOLVING
CREDIT FACILITY, WHICH GIVES AN ATTRACTIVE FINANCIAL FLEXIBILITY
TO DO DEALS OF THIS SORT.
    * FINANCING OF ACQUISITION IS DONE THROUGH BETSSON'S
REVOLVING
CREDIT FACILITY, WHICH GIVES AN ATTRACTIVE FINANCIAL FLEXIBILITY
TO DO DEALS OF THIS SORT
    * DURING FIRST TWO YEARS PLATFORM FEE WILL INCLUDE A PREMIUM
FEE
ESTIMATED TO EUR 15 MILLION
    * COMBINATION OF INITIAL CONSIDERATION AND ESTIMATED PREMIUM
FEE
CONSTITUTES TOTAL PURCHASE PRICE FOR ACQUIRED BUSINESS

Source text for Eikon:  ID:nWkr7qYsQN 
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