Announcing the deal, Betsson said it would integrate Sporting Solutions’ advanced pricing feeds for both pre-match and live betting, strengthening both its B2C and B2B sportsbook offerings.
Established in 2007, Sporting Solutions is a UK-facing business but also operates in Canada and South Africa, working with several major operators and lotteries including 888Sport, Ladbrokes Coral, SkyBet, William Hill and Norsk Tipping and Betsson, who have partnered with the platform for over 10 years.
Sporting Solutions will continue to provide services to its B2B betting partners, it said in a statement on LinkedIn.
The acquisition remains subject to regulatory approvals and certain other conditions. Once the deal gains the necessary clearance, as expected by both parties, the acquisition will close. Financial terms of the agreement were not disclosed.
Its the second B2B purchase for Betsson so far this year, after it bought Dutch games studio Holland Power Gaming and its B2C operation in February for €27.5m.
During the operator’s Q2 earnings call in July, CFO Martin Öhman insisted Betsson was prioritising M&A currently. “We are in a growth phase. We like M&A, and if you find good M&A opportunities, that’s kind of the first priority,” he said.
Acquisition a “strategic fit” for Betsson
Commenting on the deal, Jesper Svensson, CEO of Betsson operations, said it was a “strategic fit” for Betsson in helping it to improve revenue streams and create valuable business prospects.
“We are excited to welcome the Sporting Solutions team to Betsson Group,” Svensson said. “This acquisition is a strategic fit, providing us with quality technology that is already integrated into our sportsbook product.
“It complements our sportsbook B2B strategy, strengthening the flexibility and scalability of Betsson’s Sportsbook offering. Both are key factors in the success of our B2B strategy.”
In its statement FDJ highlighted a strategic refocus of international activities via both its B2C and B2B2C operations across lottery, sports betting and online gaming markets.
FDJ also clarified that Betsson would acquire the platform’s price setting and risk management activities. It does not, however, include the sports betting managed services operated by FDJ for lottery operators.
Positive performances by Betsson and FDJ
The acquisition deal comes on the back of both Betsson and FDJ reporting positive results for Q2 and H1, respectively.
In the case of Betsson, a 25.4% year-on-year increase in active players drove revenue, net profit and EBITDA.
Revenue from sportsbook activity in Q2 climbed 12.8% to €78.4m, a 12.8% year-on-year rise. This offset Betsson’s weaker segments, including poker and bingo, which made up the remaining €2m, down 13.0%.
As for FDJ, group revenue increased 10.8% to €1.43bn in its first half. Focusing on sports betting and online poker, revenue was up 14.5% to €294m, but the group noted how the Euro 2024 football tournament fell short of expectation in the latter part of the period.
Incidentally, the Sporting Solutions sale is the latest M&A activity at FDJ. Last year, the group acquired both Premier Lotteries Ireland (PLI) and Zeturf, with both deals having an impact in H1. FDJ said the two acquire businesses helped digital revenue up 39.8%.
Original article: https://igamingbusiness.com/strategy/ma/betsson-acquires-sporting-solutions-from-fdj/
