Entain has dipped its toes into the M&A well once more after disclosing an agreement to acquire BetEnt, which trades as BetCity in the Dutch digital marketplace, from Sports Media Entertainment.
The purchase is for an initial consideration of €300m (£257m) and deferred contingent consideration of up to €550m (£472m), with the deal expected to be finalised during the second half of the current year.
Entain, which anticipates the current total consideration payable on current expectations to be €450m (£386m), expects to gain around €28m (£24m) of cost synergies, predominantly from technology, content and royalty benefits, by the end of 2026.
“We are delighted that BetCity is joining Entain and are excited by the significant opportunities in the newly regulated Dutch market,” commented Jette Nygaard-Andersen, CEO of Entain.
“This acquisition will provide customers with an even better experience as we combine BetCity’s local expertise and brand alongside Entain’s market leading, customer focused platform.
“This transaction further underpins our growth strategy of operating in attractive regulated markets. We look forward to working with Melvin and the BetCity team.”
In September 2021, Amsterdam headquartered BetCity was named as one the first ten entrants to the Dutch online gambling marketplace after gaining an online sports betting and gaming licence.
It is added that Melvin Bostelaar, BetCity’s CEO, along with other key members of the leadership team, will remain with the company.
“We are happy to be joining forces with a world-class group in Entain,” Bostelaar added. “Together we will be well-placed to maintain a strong market position in the Dutch market for the coming years. Entain’s market leading platform, technology, established brands and global scale provides a fantastic opportunity to expand and enrich our customer offering.
“Both BetCity and Entain position the customer at the heart of everything we do, with Entain’s core values and philosophy in responsible gaming, compliance and company-culture seamlessly aligning with those of BetCity. We look forward to a bright future together.”
