Betsson will pay an initial $25.0m (£18.0m/€21.3m), though the agreement also includes a number of additional payments, contingent on Inkabet hitting certain performance targets.
An additional €4.0m will be due if Inkabet reaches agreed revenue and earnings before interest and tax (EBIT) targets in the six months after the deal closes, as well as a deferred payment of €5.0m, of which €3.0m is payable on 31 December 2022 and €2.0m the same day in 2023 if no claims have arisen.
Betsson said that the acquisition will strengthen and expand its presence in Latin America, which it described as a “strategically important region” for the business.
Launched in 2012 and focused on the western region of South America, Inkabet reported $25.5m in revenue for the 12 months to 30 June this year, as well as €8.8m in EBIT.
“Through this transaction, Betsson continues to build market share in the LatAm region, following the previous acquisitions of JDP Tech Ltd, Suaposta and Colbet,” Betsson chief executive Pontus Lindwall said.
“This strengthens our position in a strategically important region where we have performed well and have big ambitions for the future.”
Betsson, which plans to finance the deal through its revolving credit facility, expects to complete the deal 30 days after signing. The operator added that certain restructuring activities are also a condition for closing.
Last month, Betsson cited the growth of its sports betting business in Latin America as one of the core reasons behind it posting record SEK337.9m in profit for the second quarter.
Q2 saw Betsson expand significantly in Latin America, launching in Mexico through a new partnership with local land-based operator Big Bola Casinos.
Original article: https://igamingbusiness.com/betsson-set-to-grow-latam-presence-with-inkabet-acquisition/
