SW Nordic Limited, a subsidiary of Betsson AB (publ), has signed an agreement to acquire Inkabet’s B2C online gambling business, a rapidly growing sportsbook and casino targeting the western region of South America. The acquisition strengthens and expands Betsson’s presence in Latin America, a strategically important region for the company.
The initial consideration of the acquisition is USD 25 million. Additionally, Betsson will pay up to USD 4 million depending on the performance of Inkabet in reaching the agreed revenue and EBIT targets during the six months following the closing, together with a deferred payment of USD 5 million (out of which USD 3 million is payable on 31 December 2022 and USD 2 million is payable on 31 December 2023 if no claims have arisen). The full purchase price is the equivalent of 3.8 times EBIT of the last 12 months ending June 2021. Financing of the acquisition is done through Betsson’s revolving credit facility (RCF), which gives an attractive financial flexibility to do deals of this sort.
“Through this transaction, Betsson continues to build market share in the LatAm region, following the previous acquisitions of JDP Tech Ltd, Suaposta and Colbet. This strengthens our position in a strategically important region where we have performed well and have big ambitions for the future,” Pontus Lindwall, CEO of Betsson AB, said.