Betsson acquires RaceBets in €40m deal
Operator snaps-up horseracing specialist and will integrate racing product into existing sportsbook brands
Betsson has acquired horseracing betting operator RaceBets in a deal worth up to €40m, as the firm looks to strengthen its presence in the UK and German markets.
The deal, which should complete early next year, will see Betsson pay an initial €34m sum for the Malta-based operator, with an additional €6m to be paid should certain performance targets be met.
RaceBets, which holds licences in the UK, Germany, Malta and Ireland, saw its revenues for 2015 increase to €9.3m (£7.9m) and adjusted EBIT reached €3.4m (£2.9m) during the period.
The operator’s horseracing product will be added to Betsson’s portfolio of brands and is expected to be fully integrated onto its technology platform no later than Q3 2017.
Betsson estimated the restructuring effects on RaceBets would have a negative impact on revenue and EBIT of up to €750,000 in 2017.
Commenting on the deal, Betsson CEO and President Ulrik Bengtsson said the acquisition would help fuel additional growth in the UK and Germany.
“Horseracing 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 horseracing product on all core brands,” Bengtsson said.
Betsson is on the acquisition trail after issuing a three-year bond to finance its M&A strategy, and told recently told EGR Intel it had multiple specific targets.
Earlier this year, the Stockholm-listed operator purchased TonyBet’s Lithuanian business for up to €6m, boosting its presence in the Baltics.