Net Gaming CEO Marcus Teilman has revealed that his firm sees Germany, Austria and Switzerland as key jurisdictions for the company as it completed its acquisition of affiliate assets from Webswiser for up to €3.5m.
Teilman said: “The acquisition strengthens our position in the DACH region. We have identified the region as one of the geographical markets with the highest growth potential in the long run.
“This transaction will give us further opportunities to grow our existing operations in the region, and also expand these assets to new markets.”
The affiliate, which is known for its comparison websites within igaming, announced its intent to acquire the assets on April 19. Webwiser’s assets show strong growth and are currently generating quarterly sales of approximately €200,000, with an operating margin of approximately 75 per cent.
The initial purchase consideration of €2.29m will be settled with existing cash resources. Payment of a maximum additional consideration of €1.25m may also be required. RB Capital advised Webwiser on the sale of its assets.
Teilman added: “Considering the fact the founders will remain and continue to work with the assets for Net Gaming feels truly great, since we have got a great first impression of the said founders.”
André Boeck, founder and CEO of Webwiser, commented: “We are truly excited at finding the right buyer for our business, and are looking forward to work with the team at Net Gaming to take the websites to the next level.
“With its proven track record and a group of savvy people around, Net Gaming takes a great leap forward to become a major player in performance marketing on the DACH market.”
COMMENT: The German market is the last major European jurisdiction without up-to-date online gambling legislation, so Net Gaming’s move could be a longer term strategic play for when the market does (eventually) open up with new regulation.