ACQUISITION COST OF GIOCO DIGITALE UNDERESTIMATED
(Update)
18 September 2009
Austrian gambling group reveals the real cost
Like most other media and analyst estimations, InfoPowa
underestimated the value of the Italian gambling group
Gioco Digitale earlier this month (see previous InfoPowa
reports) in reports on its acquisition by Bwin. Reuters
has released the real numbers this week, and they make
interesting reading.
Bwin has confirmed that the
purchase price is nearer Euro 115 million in shares and
cash, but that the expensive acquisition will make Bwin
the biggest online poker mover and shaker in the
deregulated Italian market, reports the Reuters business
news service.
Bwin agreed to buy 56 percent of
Gioco for 2.3 million new Bwin shares, worth Euros 65
million at last Friday's closing price. It will buy the
rest for up to Euros 50 million in cash, Euro 5 million
of which will be dependant on Gioco reaching 2009
earnings targets.
The new shares issued for the
purchase represent 7 percent of Bwin's outstanding
capital.
Gioco had earnings before interest, tax,
depreciation and amortisation (EBITDA) of Euros 9.2
million in the first half of 2009, which, if annualised,
gives it a valuation of around 6 times this year's
EBITDA.
The deal is subject to Bwin supervisory
board approval and is expected to close by early October
2009.
Gioco CEO Carlo Gualandri will join Bwin's
management team and will develop all of Bwin's Italian
business in the future.
Gioco is currently the
biggest online poker brand in Italy with a market share
of around 20 percent, while Bwin has around 6 to 7
percent, according to analysts.
Online Casino News Courtesy of
Infopowa
More news here.
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