Online gambling company Betsson AB has announced the acquisition of Belgian sports betting and gaming operator betFIRST for a total sum of €120 million ($130 million). The deal, to be paid in cash, includes an earnout payment of up to €3 million, contingent upon specific conditions being met. This acquisition is part of Betsson’s strategy to achieve profitable growth in locally regulated markets.
The agreement involves the purchase of all shares in the betFIRST Group, which operates the betFIRST brand in Belgium. The upfront consideration for the acquisition amounts to €117 million, free of debt, with the potential for the aforementioned earnout payment based on agreed financial targets. The initial purchase price corresponds to a multiple of 10 times betFIRST’s estimated EBITDA for the fiscal year 2023.
Founded in 2011, betFIRST is a well-established B2C operator in the Belgian online gaming market, offering sports betting and dice games. Betsson said the brand has gained recognition as a leading sports betting provider in its home market, demonstrating consistent customer acquisition and revenue growth.
In addition to holding licenses for online sports betting and online dice games in Belgium, the company operates around 450 retail points of sale in the country and owns a gaming arcade. In the last financial year, betFIRST achieved a net gaming revenue of €51.2 million ($55.9 million) and an adjusted EBITDA of €10 million ($10.9 million).
In parallel with the acquisition, Betsson has also formed a strategic partnership with French casino operator Groupe Partouche to offer iCasino services in regulated markets. Groupe Partouche operates land-based casinos in France and Switzerland and holds an offline casino license in Belgium, which can be extended to an online casino license.
Leveraging Betsson’s online gaming recognition and Groupe Partouche’s market position in land-based casinos, the partnership aims to deliver “an attractive online casino offering tailored to the local market.” Subject to obtaining the necessary licenses from the Belgian regulator, an online casino platform is expected to launch in Belgium in 2023. Both companies said they also remain committed to exploring further opportunities to expand their collaboration.
By acquiring betFIRST and establishing a partnership with Groupe Partouche, Betsson says it has earned vital access to the competitive Belgian market, expanded its geographical presence, and increased its share of the revenue from locally regulated markets. The company intends to continue operating the betFIRST sports betting business as it is today while exploring potential synergies “in the mid-to-long term.”
Pontus Lindwall, CEO and President of Betsson, expressed enthusiasm for entering the Belgian market and highlighted the strategic alignment of the betFIRST acquisition and the partnership with Groupe Partouche.
“At Betsson, our growth strategy revolves around extending our presence into new markets, particularly in locally regulated or soon-to-be regulated markets,” he stated. “Belgium, where the online gaming market is regulated since 2011, aligns very well with this strategy.”
The acquisition of betFIRST is not subject to regulatory approvals and is expected to be completed around July 5, 2023.
