Entain agrees BetCity acquisition
Entain has agreed to acquire BetCity for an initial consideration of €300m ($312.9m) and deferred contingent consideration of up to €550m.
The sports betting, gaming and interactive entertainment group has agreed to acquire the entire share capital of BetEnt BV., which trades under the BetCity.nl name, from Sports Entertainment Media BV.
The initial consideration of €300m is payable in cash at completion, with a balancing payment to be paid early next year based on the actual performance of BetCity in the financial year 2022. A further contingent payment will then be paid in early 2024, based on 10x BetCity’s EBITDA for the financial year 2023, less amounts already paid out.
And finally, a contingent payment of €50m will be paid on delivery of synergies and successful migration to the Entain Platform. BetCity CEO Melvin Bostelaar and other key members of the leadership team will remain with the group.
“We are delighted that BetCity is joining Entain and are excited by the significant opportunities in the newly regulated Dutch market,” said Entain CEO Jette Nygaard-Andersen. “This acquisition will provide customers with an even better experience as we combine BetCity’s local expertise and brand alongside Entain’s market leading, customer focused platform.
“This transaction further underpins our growth strategy of operating in attractive regulated markets. We look forward to working with Melvin and the BetCity team.”
The acquisition is expected to be completed during H2 2022, with the initial consideration to be funded from existing cash resources and drawings on the company’s revolving credit facility.
Bostelaar commented: “We are happy to be joining forces with a world-class group in Entain. Together we will be well-placed to maintain a strong market position in the Dutch market for the coming years.
“Entain’s market leading platform, technology, established brands and global scale provides a fantastic opportunity to expand and enrich our customer offering. Both BetCity and Entain position the customer at the heart of everything we do, with Entain’s core values and philosophy in responsible gaming, compliance and company culture seamlessly aligning with those of BetCity. We look forward to a bright future together.”
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