Gernandt & Danielsson advises Betsson AB (publ) (“Betsson”) in connection with its acquisition of all the shares in the Zecure Gaming Limited (a subsidiary of Gaming Innovation Group (”GiG”)), to which the assets, business activities, operations, front-end and middleware technology and gaming licenses attributable to GiG’s B2C operations will be transferred.
The brands Guts, Kaboo, Rizk and Thrills are operated by GiG’s B2C operations. The brands operate under licenses held in Malta, UK, Sweden and Germany (Schleswig-Holstein). The Rizk brand will soon be launched under licenses held in Spain and Croatia.
The initial consideration of the acquisition is EUR 22.3 million, which corresponds to 2.9 times EBIT in 2019. As part of the acquisition, Betsson has entered into a platform services agreement with GiG for a minimum of two and a half years to host the acquired brands on GiG’s B2B platform. Betsson will pay a fee based on revenues under the platform services agreement. During the first two years the platform fee will include a premium fee estimated to EUR 15 million (of which EUR 8.7 million will be pre-paid at completion). The transaction is conditional upon customary regulatory approvals. Completion of the deal is expected in mid-April 2020.
Gernandt & Danielsson advises Betsson with a team of Partners Fredrik Palm (M&A), Candra Torebring (finance), Rolf Larsson (competition), Senior Associates Oscar Anderson (M&A) and Helena Selander (competition), and Associate Andreas Lexhag (M&A).