Betsson to acquire NetPlay TV in £26.4m deal
Operator to snap up Jackpot247, Supercasino.com and Vernons brands in a move which boosts its UK presence
Betsson Group is back on the acquisition trail after reaching an agreement to buy NetPlay TV for £26.4m, in a move which will boost the operator’s presence in the UK market.
The all-cash deal for the London-listed firm is expected to be completed by April 2017 and will see Betsson take control of brands such as Jackpot247, Supercasino.com and Vernons.
The recommended cash offer of 9p per share is to be effected by a court-sanctioned scheme, which must be approved by a majority of NetPlay shareholders.
However, NetPlay said its directors intend to unanimously recommend shareholders vote in favour of the scheme.
Betsson president and CEO, Ulrik Bengtsson, said applying the firm’s experience of operating successful casino brands will provide a boost to NetPlay’s earnings and growth.
“We have a long-term view on NetPlay and will achieve significant cost synergies and operational improvements over time,” added Bengtsson.
“Part of Betsson’s acquisition strategy is to add volume to its scalable Techsson platform and to increase the share of regulated revenue.”
For the six months ending 30 June 2016, NetPlay reported net revenue of £14.7m and adjusted EBITDA of £1.7m, therefore meaning the Betsson bid equates to roughly 7.5x EBITDA.
Bjarke Larsen, chief executive officer of NetPlay, said the acquisition will help the interactive TV gaming company to capitalise on future growth opportunities.
“A combination with Betsson would allow NetPlay to best utilise the enlarged group’s assets to enhance the gaming experience for its customers,” said Larsen.
“With the changing market dynamics and as the market continues to consolidate, we believe now is the right time to take advantage of this opportunity to realise value for all of our shareholders.”
NetPlay TV’s share price was up 10% to 8.80p on the London stock Exchange at the time of writing.
The proposed deal follows Betsson’s acquisition last year of horseracing betting operator RaceBets in an agreement worth up to €40m.