Gaming VC buys Betboo to begin push on Brazil
Gaming VC has acquired Latin American online gambling business Betboo as the latest stage in its push into new markets.
Gaming VC has acquired Latin American online gambling business Betboo.
The earn-out deal will see Gaming VC pay an initial US$4m in cash plus interim payments to be deducted from a total consideration of no more than US$30m, based on earnings during the final 12-months of the three-year agreement.
Betboo provides bingo, sportsbook, casino and poker to over 3,000 monthly customers located mainly in Brazil. It is licensed in the Netherlands Antilles.
According to Gaming VC, the Betboo business generated unaudited revenues of $4.4m for the 12 months to 30 June 2009. Betboo is on Playtech’s iPoker network and also relies on third-party suppliers for its CRM and IT support.
Betboo’s senior management team, also the majority owners of the business, will remain with the business post-acquisition.
Gaming VC chief executive Kenny Alexander explained that the acquisition reflected the company’s strategy of diversifying the group’s product offering away from Germany.
Alexander said: “South America represents an exciting market opportunity. With a population of approximately 285 million, many of which are passionate about sports, and increasing broadband penetration, we are confident of significantly increasing Betboo’s presence in this new territory for Gaming VC”.
In other Latin American online gambling news, Bodog founder Calvin Ayre said last week that Bodog is looking for a South American partner.