Brief: Betsson Acquires Inkabet

Betsson AB

11/08/2021 13:09

Aug 11 (Reuters) - Betsson AB  BETSb.ST :
    * BETSSON ACQUIRES INKABET TO STRENGTHEN ITS MARKET POSITION
IN
THE WESTERN REGION OF SOUTH AMERICA
    * BETSSON ACQUIRES INKABET TO STRENGTHEN ITS MARKET POSITION
IN
THE WESTERN REGION OF SOUTH AMERICA
    * SW NORDIC LIMITED, A SUBSIDIARY OF BETSSON AB (PUBL), HAS
SIGNED
AN AGREEMENT TO ACQUIRE INKABET'S B2C ONLINE GAMBLING BUSINESS
    * INKABET IS ONE OF B2C BRANDS OFFERING SPORTSBOOK AND
CASINO
PRODUCTS, TARGETING WESTERN REGION OF SOUTH AMERICA
    * COMPLETION OF TRANSACTION IS EXPECTED TO OCCUR IN 30 DAYS
FROM
SIGNING. CERTAIN RESTRUCTURING ACTIVITIES ARE ALSO A CONDITION
FOR CLOSING.
    * FULL PURCHASE PRICE IS EQUIVALENT OF 3.8 TIMES EBIT OF
LAST 12
MONTHS ENDING JUNE 2021
    * FINANCING OF ACQUISITION IS DONE THROUGH BETSSON'S
REVOLVING
CREDIT FACILITY (RCF), WHICH GIVES AN ATTRACTIVE FINANCIAL
FLEXIBILITY TO DO DEALS OF THIS SORT.
    * INKABET  REVENUE OVER LAST 12 MONTHS AS OF JUNE 2021 WAS
USD
25.2 MILLION
    * ADDITIONALLY, BETSSON WILL PAY UP TO USD 4 MILLION
DEPENDING ON
PERFORMANCE OF INKABET IN REACHING AGREED REVENUE AND EBIT
TARGETS DURING SIX MONTHS FOLLOWING CLOSING, TOGETHER WITH A
DEFERRED PAYMENT OF USD 5 MILLION
    * INITIAL CONSIDERATION OF ACQUISITION IS USD 25 MILLION

Source text for Eikon:  ID:nWkr9Gqrh3 
Further company coverage:  BETSb.ST 

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