GVC continues M&A spree with Crystalbet acquisition
Operator takes 51% stake in Georgia-facing firm for €41.3m and commits to acquire the remaining 49% in 2021
GVC Holdings has agreed a deal to acquire 51% of Georgia-facing operator Crystalbet for €41.3m, with a commitment to buy the remaining 49% in 2021 at a valuation of approximately €150m.
The London-listed operator this morning announced it had reached an agreement to acquire a majority of the equity capital of Crystalbet-owner Mars LLC, with completion of the deal expected to occur by the end of the month.
According to GVC, Crystalbet is Georgia’s largest online sportsbook, and the second largest online gaming brand overall, posting 2017 revenues of GEL102.9m (€34m) and EBITDA of GEL36.5m (€12m).
Kenny Alexander, CEO of GVC Holdings, said: “We are delighted to welcome Crystalbet to the GVC Group, having been impressed with what the management team has achieved thus far.
He added: “Through access to GVC’s content, technology and digital marketing skills, we believe Crystalbet can become a clear leader in the regulated Georgian market.
“This acquisition is in line with our stated strategy of being a truly global player, with a focus on regulated/regulating markets.”
The deal will see GVC take 51% of the equity capital of Crystalbet for €41.3m, plus a working capital adjustment, while the remaining 49% will be acquired in 2021 at a valuation at the lower of 7 times the 2020 Clean EBITDA or €150m.
Crystalbet’s management team, led by CEO Koba Giglemiani, will also all remain in place and retain their full equity shareholdings in Crystalbet following the acquisition.
Giglemiani of Crystalbet added: “When we were looking for a strategic acquirer to take Crystalbet to the next level, GVC was very much our first choice.
“GVC’s experience and track record in many different geographic markets, together with its technology and marketing skills are key attractions for Crystalbet. We very much look forward to being part of GVC Holdings.”
Crystalbet was launched in 2011 and holds licences to offer online sports betting, casino, poker and peer-to-peer games throughout the regulated Georgian market.
GVC’s acquisition of Crystalbet in the latest in a wave of M&A deals completed by the bwin-owner in recent months, most recently UK bookmaking giant Ladbrokes Coral.
Read EGR‘s recent interview with GVC CEO Kenny Alexander here.