Online gaming conglomerate GVC Holdings PLC has announced the agreement of a €41.3m deal to acquire a 51% stake in Republic of Georgia online gaming firm Crystalbet.
Under the terms of the multi-million euro deal, GVC is obliged to purchase the remaining 49% of the business in 2021, at a valuation of either the lower of seven times the 2020 clean EBITDA or €150m.
Crystalbet, which was established in 2011 holds licences to offer online gaming products, including sports betting, casino games, poker and peer-to-peer games throughout the fully regulated market of the Republic of Georgia.
During the financial year 2017, the company reported revenues of €34m with EBITDA of €12m and profits after tax of €10.2m. GVC have confirmed that Crystalbet’s current management team will remain with the firm and retain the full equity shareholdings following this initial acquisition.
In a statement announcing the acquisition, Kenneth Alexande, GVC Holdings CEO, said: “We are delighted to welcome Crystalbet to the GVC Group, having been impressed with what the management team has achieved thus far.
“Through access to GVC’s content, technology and digital marketing skills, we believe Crystalbet can become a clear leader in the regulated Georgian market. This acquisition is in line with our stated strategy of being a truly global player, with a focus on regulated/regulating markets.”
Crystalbet CEO, Koba Giglemiani, added: “When we were looking for a strategic acquirer to take Crystalbet to the next level, GVC was very much our first choice. GVC’s experience and track record in many different geographic markets, together with its technology and marketing skills are key attractions for Crystalbet. We very much look forward to being part of GVC Holdings.”
Completion is not subject to regulatory approval and is expected to occur by the end of March 2018.