Betsson AB has purchased the Belgian sports betting and gaming operator BetFirst for a total value of €120m ($130m). Up to €3m of this total represents an earnout payment that is only due in cash if certain requirements are completed.
The acquisition's initial consideration is equal to a multiple of 10 times BetFirst’s projected EBITDA for the fiscal year 2023.
In its most recent fiscal year, which ended on 31 December 2022, BetFirst generated net gaming revenue of €51.2m and adjusted EBITDA of €10.0m.
Meanwhile, Betsson's new collaboration with French casino operator Groupe Partouche will produce an online casino product catered to the local market.
Groupe Partouche owns and runs offline casinos in Belgium as well as France and Switzerland. This licence can also be used to establish online casinos. The online casino service will be introduced in Belgium in 2023.
Pontus Lindwall, Betsson AB’s CEO and President, said: “We are very excited about entering the Belgian market together with our partners Groupe Partouche and see a strong strategic fit with the acquisition of BetFirst.
“At Betsson, our growth strategy revolves around extending our presence into new markets, particularly in locally regulated or soon-to-be regulated markets. Our business model is highly scalable and these initiatives will add revenue and strengthen our profitability over time.”
In connection with the acquisition, Betsson has hired Lazard as a financial advisor and Gernandt & Danielsson as its primary legal counsel, together with Van Bael & Bellis and Edson Legal as counsel in Belgium.
