Betsson has made significant strides in its latest merger and acquisition (M&A) activities. The company recently acquired betFIRST, a leading Belgian sports betting and gaming operator, for a total consideration of EUR 120 million. The deal, conducted entirely in cash, includes an additional earnout payment of up to EUR 3 million,upon certain conditions being met. This strategic move aligns with Betsson’s growth objectives, which prioritize expansion in regulated markets for long-term profitability.
betFIRST operates 450 points of sale in Belgium
Founded in 2011, betFIRST has established itself as a prominent business-to-consumer (B2C) operator in the locally regulated online gaming sector in Belgium. The company’s offerings encompass sports betting and dice games, making it a renowned brand in the Belgian sports betting market. With a strong track record of customer acquisition and revenue growth, betFIRST holds licenses for both online sports betting and online dice games in Belgium. In addition to its online presence, the company operates approximately 450 points of sale throughout the country and owns a gaming arcade. In the past fiscal year, betFIRST generated net gaming revenue of EUR 51.2 million and adjusted EBITDA of EUR 10.0 million.
Through the acquisition of betFIRST, Betsson gains vital access to the highly competitive Belgian market, diversifying its geographical footprint and augmenting its revenue share from regulated markets. Betsson intends to maintain the current operations of betFIRST’s sports betting business while exploring potential synergies for future growth. This strategic move positions Betsson favorably in the online gaming landscape, enabling it to capitalize on the regulatory environment in Belgium, which has overseen online gaming since 2011.
Partnership with Group Partouche
In addition to the betFIRST acquisition, Betsson has forged a strategic partnership with Groupe Partouche, a publicly listed French casino operator. This collaboration aims to provide online casino services in regulated markets, with the first joint online casino offering set to launch in Belgium in 2023, pending the acquisition of the necessary licenses. Groupe Partouche’s expertise in land-based casinos, coupled with Betsson’s prowess in the online gaming sector, lays the foundation for an attractive online casino product tailored to the local Belgian market. Groupe Partouche holds an offline casino license in Belgium, which can be expanded to encompass an online casino license. Both Betsson and Groupe Partouche are committed to nurturing this partnership and exploring further opportunities for expansion.
Pontus Lindwall, CEO and President of Betsson AB, expressed his enthusiasm about entering the Belgian market alongside Groupe Partouche and acknowledged the strategic fit of acquiring betFIRST. Lindwall emphasized that Betsson’s growth strategy revolves around venturing into new markets, particularly those that are regulated or on the verge of regulation. Belgium, having regulated its online gaming market in 2011, aligns perfectly with this approach. Leveraging its scalable business model, Betsson expects these initiatives to contribute to revenue growth and enhance profitability in the long run.
Betsson has secured the financing for the betFIRST acquisition using existing cash reserves from its balance sheet and available credit facilities. The completion of the acquisition is not pending any further approvals.? To facilitate the deal, Betsson has engaged Lazard as its financial advisor and Gernandt & Danielsson, along with Van Bael & Bellis and Edson Legal, as its legal advisors in Belgium.
Ongoing M&A strategy solidifies Betsson’s position as a major player
Betsson’s recent M&A activities highlight its commitment to expanding its presence in regulated markets and solidify its position as a major player in the online gambling industry. By acquiring betFIRST and establishing a partnership with Groupe Partouche, the company strategically positions itself for sustainable growth and increased profitability in the evolving global gaming landscape.
Betsson, a leading player in the online gambling industry, is focusing on both organic growth and strategic acquisitions as part of its expansion strategy. The company is actively seeking opportunities primarily in Europe, with a specific emphasis on markets outside of the Nordics. Preferably, Betsson targets markets that are already regulated or have a clear path toward regulation.
In its acquisition strategy, Betsson shows a preference for operators that rely on third-party technology. This approach allows Betsson to leverage existing infrastructure and systems, streamlining the integration process. Moreover, the company is open to strategic acquisitions that provide access to licenses or innovative product technology, further enhancing its competitive edge in the market.
By pursuing a dual strategy of organic growth and targeted acquisitions, Betsson aims to strengthen its position in regulated markets. With its M&A appetite for strategic partnerships, Betsson is poised to capitalize on emerging opportunities and solidify its presence across Europe.
Betsson trades on NASDAQ Nordic at 110.72? (-0.16?-0.14 percent)
Related content:
SiGMA star moves of the week
New country director for Brazil solidifies Better Collective (www.hbm2.top)
Las Vegas Sands solidifies position as gaming industry leader (www.hbm2.top)
Did you know that the SiGMA Forex Summit takes place in Cyprus in September?
