Betsson goes for Belgian foothold with €120m betFIRST deal
Stockholm-listed operator inks cash-plus-earnout acquisition and strategic partnership with Group Partouche to develop joint online casino offering
Betsson AB has confirmed the acquisition of Belgian sports betting and igaming operator betFIRST in a €120m (£102.6m) cash-plus-earnout deal.
The Malta-headquartered operator will pay €117m in cash with a further €3m earnout payment subject to the company delivering on agreed financial targets.
The deal includes 100% of shares in betFIRST group and is equivalent to 10x of betFIRST’s estimated EBITDA for the financial year 2023. Funding for the deal is understood to have come from Betsson’s existing balance sheet cash and credit facilities.
BetFIRST holds a highly coveted online sports betting and online casino licence in Belgium, operating 450 retail points of sale and a gaming arcade. The company reported net gaming revenue of €51.2m and an adjusted EBITDA of €10m in the 2022 financial year.
In tandem with the acquisition, Betsson has agreed a strategic partnership with French operator Group Partouche to develop a joint online casino offering ahead of a launch in regulated markets.
The first joint online casino offering should be launched in Belgium during 2023, subject to obtaining the required licenses.
Betsson has said the double deal provides “critical access” to the highly competitive Belgian market, as well as achieving further diversification while upping its regulated market revenue contribution.
The operator also confirmed its intention to continue operating the betFIRST sports betting business as it is today while “exploring potential synergies” in the mid-to-long term.
Betsson AB CEO and president Pontus Lindwall welcomed the deal as a crucial step in the firm’s longer term business objectives.
“We are very excited about entering the Belgian market together with our partners Groupe Partouche and see a strong strategic fit with the acquisition of betFIRST,” Lindwall said.
“At Betsson, our growth strategy revolves around extending our presence into new markets, particularly in locally regulated or soon-to-be regulated markets. Belgium, where the online gaming market is regulated since 2011, aligns very well with this strategy.
“Our business model is highly scalable, and these initiatives will add revenue and strengthen our profitability over time,” he added.
Shares in Betsson AB rose by 0.12% in early trading to SEK106.50 per share on the Nasdaq Stockholm Stock Exchange.
The deal is expected to complete on or around 5 July 2023, and is not conditional on regulatory approval.
Betsson engaged Lazard as financial advisor and Gernandt & Danielsson as principal legal advisor (together with Van Bael & Bellis and Edson Legal as legal advisors in Belgium) in connection with the acquisition.