Betsson to re-enter Dutch market after €27.5m acquisition of B2C and B2B firms
Operator purchases Holland Gaming Technology Ltd and Holland Power Gaming NV seven months after withdrawing its online gambling licence application
Betsson is poised to re-enter the Netherlands after announcing a deal to acquire Dutch-licensed Holland Gaming Technology Ltd and Holland Power Gaming NV for a total consideration of €27.5m (£23.5m).
Holland Gaming Technology runs two websites in the regulated Dutch market, goldruncasino.nl and goldruncasino.com, with games studio Holland Power Gaming exclusively supplying the operator with casino titles.
The transaction is expected to close today, 19 February, with €16m to be paid upfront at closing and the rest to be paid in deferred payments of €9m and €2.5m, which will be paid in six months and 12 months, respectively.
The deal will be financed with Betsson’s own “liquid assets” on a cash and debt-free basis, the operator revealed. It is also subject to post-closing approval by the country’s gambling regulator, the KSA.
Management said the acquisition will, over time, contribute to a larger share of income from locally regulated markets and is consistent with Betsson’s strategy of delivering “profitable growth through geographic expansion”.
Betsson exited the Netherlands at the end of September 2021, just prior to the market’s reregulation, and was one of several international firms forced to endure a ‘cooling off’ period for accepting Dutch players without a licence.
The company previously operated Kroon Casino and Oranje Casino in what was previously a grey market for around two decades.
However, last July, the multi-brand operator blamed “significant delays” in the application process for its decision to withdraw its bid for an online gambling licence.
This acquisition, which offers Betsson an automatic route back into the country, comes on the back of the operator announcing an eighth successive quarter as revenue in the final three months of 2023 leapt 14% year on year, reaching €251.9m.
The Stockholm-listed also noted a 40% jump in EBITDA to €71.9m, with a corresponding EBITDA margin of 28.6%.
EGR spoke to CEO Pontus Lindwall following the publication of the firm’s results, where he talked up the firm’s performance in Central and Eastern Europe and Central Asia, black markets and share price surprises.
Betsson shares were up 2.5% in early trading to SEK106.70 (£8.09).