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Betsson to acquire Nordicbet

Discussion in 'Online Casinos' started by rainmaker, Apr 18, 2012.

    Apr 18, 2012
  1. rainmaker

    rainmaker I'm not a penguin CAG webmeister

    Occupation:
    -
    Location:
    -
    .

    (thanks for the heads up guys, I know...I was late on this one :))

    Press statement:


    BETSSON TO ACQUIRE NORDICBET

    Betsson AB will acquire Nordic Gaming Group (NGG), a private gaming company based in Malta, owning
    the brands, NordicBet, Tobet and Triobet. NGG offers gaming in the form of sportsbook, casino and poker
    to, primarily, Nordic and Baltic customers. Through this acquisition, Betsson secures its position as the largest
    private alternative to the Nordic monopolies. This acquisition will not affect the previously communicated
    dividend proposal.

    ”Through this transaction, Betsson continues to strengthen its Nordic operations and its leading position amongst the
    private gaming company alternatives in the Nordic region. In addition, Betsson’s brand portfolio is strengthened
    significantly within the betting segment, as NGG receives approximately fifty percent of its revenues from sportsbook”,
    states Magnus Silfverberg, CEO and President of Betsson.

    In 2011, NGG increased its revenues by 37 percent. During the period 1 April 2011- 31 March 2012, revenues amounted to
    MEUR 50 and operating income (EBIT) to MEUR 111. At the beginning of 2012, the number of active depositing customers
    totaled 90,000 and the company has 185 employees. In addition to the income contributed by NGG, it is deemed that
    synergy effects will be achieved, for example, through the integration of technology platforms and of supplier
    agreements. As Betsson has a major recruitment need, management believes that the synergies will primarily result in a
    welcomed injection of qualified staff, which can be utilised within other parts of Betsson which are currently undergoing a
    strong expansion.

    Betsson is acquiring NGG from a number of individuals, including both the founders of the company, members of
    management and employees, as well as from external investors. At closing of the transaction, Betsson will pay a purchase
    price for the operations (enterprise value) totalling MEUR 65, of which MEUR 5 will be paid either in the form of Betsson
    shares at a historical 10 day average price or in cash, and the remaining MEUR 60 will be paid in cash. The purchase price
    is equivalent to 5.9 times EBIT during the last 12 months (1 April 2011 – 31 March 2012). In addition to the up-front purchase
    price, an additional purchase price, based on the development of NGG during 2012, may become payable by Betsson.
    Such additional purchase price, if any, will amount to a maximum of MEUR 20, which implies that the total maximum
    purchase price is MEUR 85. If the outcome of the acquisition results in the full additional purchase price becoming
    payable, the total purchase price is expected to correspond to approximately 6-7 times NGG’s EBIT for 2012. Betsson is
    entitled to choose to pay any additional purchase price in cash or in Betsson B shares, based on the share price
    prevailing at the time of such payment. Completion of the transaction is conditional upon customary regulatory
    approvals.

    Betsson has secured a two-year external financing of the transaction, amounting to MSEK 500, which at the current base
    rate results in an interest rate of approximately 4 percent. The facility will be fully utilized at closing and will be amortised
    at an appropriate rate which considers the company’s dividend policy.

    ”For NGG, this is an attractive solution as the company can incorporate Betsson’s global strength into its operations and it
    strengthens our possibilities to continue to grow rapidly and with good profitability in the Nordic region, the Baltics and
    Poland. The two companies have similar cultures, and we foresee a smooth integration, and we believe that we can
    quickly benefit from each other’s strengths “, says Per Hellberg, CEO of NGG.

    Betsson invites to a press meeting today at 11.30 CET at Betsson’s office, Regeringsgatan 28, Stockholm.
    To participate by phone please call: +46 (0)8 505 598 53 (Sweden) or +44 (0)203 043 24 36 (UK). To participate by Webcast
    at 11:30 a.m. (CET) (by audio, image and power point presentation) visit You must register/login in order to see the link. or
    You must register/login in order to see the link..

    Carnegie Investment Bank is the financial advisor to Betsson in conjunction with the transaction and Gernandt &
    Danielsson Advokatbyrå is the legal advisor.
    For further information, please contact
     
    5 people like this.
  2. Apr 18, 2012
  3. Christoff

    Christoff Experienced Member

    Occupation:
    Media Auditor
    Location:
    Spain
    Unibet buys Bet24 last week and now Betsson do this - it's getting competitive :)
     
  4. Apr 18, 2012
  5. conker

    conker CM Advisory Group admin - Meister Minions Manager CAG MM webmeister

    Occupation:
    Marketer
    Location:
    UK
    Makes logical sense I suppose, buy up the competition and grow stronger.
     
  6. Apr 18, 2012
  7. Realitybitez

    Realitybitez Experienced Member

    Occupation:
    Cati Interviewer
    Location:
    New Zealand
    yeah I just got an email myself..

    Dear fellow player,

    We would like to inform you that Betsson AB (publ) today announced that it has signed an agreement to acquire substantial parts of the business of Nordic Gaming Group plc, which is the owner of the Nordicbet, Triobet and Tobet gaming operations. Once the transaction is approved by competent regulatory bodies, the acquisition will be finalized in the end of second quarter 2012.

    We would like to confirm this announcement from our side as well as assure you that it will not have any impact on you as our customer: Nordicbet will continue the same as usual, being your local partner for all your favorite services and products. Your gaming account, wallet and personal data continue to be secure with us, and there will be no interruption to the Nordicbet service or product offering. The only change is that after the acquisition, Nordicbet will be part of the biggest independent online gaming company in our markets, giving you as a player an even better offer going forward.

    Not sure if this is a good thing or a bad thing:confused: What are Betsson like? :)
     
  8. Apr 18, 2012
  9. rainmaker

    rainmaker I'm not a penguin CAG webmeister

    Occupation:
    -
    Location:
    -
    Just a note,

    I watched the relevant press conference, and Magnus Silfverberg (CEO Betsson) said "we will run NGG (Nordicbet, Triobet and Tobet)) independently for the rest of this year and there afterwards will start to integrate NGG into the Betsson group"
     
  10. Apr 18, 2012
  11. Silencio

    Silencio Dormant account

    Occupation:
    Webmaster
    Location:
    Netherlands
    And more and more NetEnt Casinos strike a deal with Microgaming, and thus adding mg games to their arsenal. Add this buy-up news and these are very interesting times indeed :)
     
  12. Jun 22, 2012
  13. rainmaker

    rainmaker I'm not a penguin CAG webmeister

    Occupation:
    -
    Location:
    -
    .

    Update.

    The acquisition of Nordicbet was reported completed earlier this week (on Wednesday):

    ......


    Betsson AB (publ) completes the acquisition of NordicBet and resolves, as a result thereof, on an issue in kind


    2012-06-20 15:15

    Betsson AB (publ) (”Betsson”) has today, following receipt of necessary regulatory approvals, completed the previously announced acquisition of NordicBet (through acquisition from Nordic Gaming Group plc of the holding company Transvectio Ltd) (“NordicBet”). Betsson has acquired all shares in NordicBet by payment of a consideration of approximately EUR 65 million consisting partly of cash and partly of a new issue of 217,974 shares of series B (“B Shares”). As previously announced, additional purchase price, based on the development of the acquisition during 2012, may become payable. Betsson is entitled to choose to pay any additional purchase price in cash or in own shares. Such additional purchase price, if any, will amount to a maximum of EUR 20 million, which implies that the total maximum purchase price (without adjustments for change in market price for delivered Betsson shares) is EUR 85 million. If any additional purchase price becomes payable the final acquisition value will be determined by the market value of Betsson shares issued on the relevant day.

    As a result of the acquisition consideration being partially paid by way of own shares, the board of directors has today resolved, in accordance with the authorization from the annual shareholders’ meeting on May 11th, 2012, to issue no more than 217,974 new B Shares against subscription in kind, whereby the share capital of Betsson will increase by SEK 435,948, from SEK 84,002,418 to SEK 84,438,366.

    The acquisition has been partly financed through loan financing in the amount of approximately EUR 55 million. The facility will be repaid at an appropriate rate which considers the company’s dividend policy.

    Only Nordic Gaming Group plc as seller of NordicBet has been entitled to subscribe for the new B Shares, with a right and obligation to pay for the new B Shares by transfer of shares in NordicBet. All newly issued B Shares have been subscribed for and allotted. The estimated value of the assets contributed in kind corresponds to a subscription price of approximately SEK 203 per common share, corresponding to the volume-weighted average share price for the Betsson share during the last 10 trading days up until and including June 18th, 2012.

    Trading in the new shares is expected to commence on NASDAQ OMX Stockholm on or about June 21st, 2012. As a result of the issue in kind, the number of shares in Betsson will increase from 42,001,209 (5,420,000 shares of series A and 36 581 209 B Shares) to 42,219,183 (5,420,000 shares of series A and 36,799,183 B Shares). The number of votes in Betsson will increase from 90,781,209 to 90,999,183.

    For further information, please contact: Magnus Silfverberg, CEO and President Betsson AB *cut*
     
    1 person likes this.

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