Betsson has strengthened its presence in South America as its subsidiary, SW Nordic Limited, completes the acquisition of B2C online gambling business Inkabet.
A sportsbook and casino operator that targets the western region of South America, the purchase of Inkabet is noted as a “strategically important region” for Betsson and enhances the company’s position in Latin America.
Moreover, Betsson expects the acquisition to increase scale in the business and to “unleash synergies”, being both revenue and earnings accretive from the fourth quarter 2021 onwards.
Commenting on the agreement back in August, Pontus Lindwall, CEO of Betsson, stated: “Through this transaction, Betsson continues to build market share in the LatAm region, following the previous acquisitions of JDP Tech Ltd, Suaposta and Colbet.
“This strengthens our position in a strategically important region where we have performed well and have big ambitions for the future.”
The initial consideration of the acquisition, which will see SW Nordic absorb the business activities, operations and all the related assets used for operating the Inkabet brand, is $25m.
Additionally, Betsson will pay up to $4m depending on the performance of Inkabet in reaching the agreed revenue and EBIT targets during the six months following the closing, together with a deferred payment of $5m (out of which $3m is payable on December 21, 2022, and $2m is payable on December 31, 2023, if no claims have arisen).
The full purchase price is the equivalent of 3.8 times EBIT of the last 12 months ending June 2021. Financing of the acquisition is to be achieved through Betsson’s revolving credit facility.