Betsson to purchase Europe-Bet for potential $85m

son is to acquire fellow operator Europe-Bet in a deal worth up to $85m.

Europe-Bet is licensed in Georgia, and Betsson claims it will become the second largest local online operator in Georgia with close to 30% market share as a result of the acquisition, which it expects to be completed in July.

Europe-Bet is currently owned by a group of entrepreneurs and some of the founders will continue in strategic positions following the acquisition.

The initial purchase consideration for the deal is $50m, which is 2.5 times the EBITDA generated by Europe-Bet for 2014, and a remaining amount of a maximum of $35m may be payable after one year, pending that there are no gambling regulatory changes in the Georgian market.

The financing of the acquisition will be through the renewal of a credit facility amounting to €35m and a new credit facility of SEK 700m.

Europe-Bet generated $52.4m in revenue for 2014, $40.8m of which was accounted for by online operations.

Betsson president and CEO Magnus Silfverberg said: "Europe-Bet has established a strong brand with a competitive multi-product offering in the locally regulated market of Georgia. Together with Betsson's technology, a foundation for profitable and sustainable growth within and outside Georgia is created.”

Betsson announced earlier this month that Silfverberg is to leave the position of CEO and will be replaced by Pontus Lindwall in July.