Betsson AB has announced that it intends to purchase private gaming firm Nordic Gaming Group for €65 million. The Nordic Gaming Group is the operator of the NordicBet, ToBet and TrioBet sportsbook brands.
"Through this transaction, Betsson continues to strengthen its Nordic operations and its leading position among private gaming company alternatives in the Nordic region," said Magnus Silfverberg, CEO for President for Betsson. "In addition, Betsson’s brand portfolio is strengthened significantly within the betting segment as Nordic Gaming Group receives approximately 50 percent of its revenues from sportsbook."
Betsson stated that it will acquire Nordic Gaming Group from ‘a number of individuals including both the founders of the company, members of management and employees as well as from external investors’ with €5 million of the purchase price due to be paid via shares at a historical ten-day average price or in cash with the remaining €60 million due in cash.
"For Nordic Gaming Group, this is an attractive solution as the company can incorporate Betsson’s global strength into its operations and it strengthens our possibilities to continue to grow rapidly and with good profitability in the Nordic region, the Baltics and Poland," said Per Hellberg, CEO for Nordic Gaming Group. "The two companies have similar cultures and we foresee a smooth integration and we believe that we can quickly benefit from each other’s strengths."
Nordic Gaming Group increased its net gaming revenues by 37 percent when compared to the previous twelve-month period while revenues from the beginning of April 2011 to the end of last month totaled €50 million with earnings before interest and tax of €111 million.