Swedish igaming operator Betsson continues to focus its efforts on the Latin American market with a new acquisition of Inkabet, a B2C online casino and sportsbook brand. Through the brand acquisition, Betsson will secure a larger market share in the western region of South America, which may soon be pivotal for the company’s operations in the region.
What to Expect from Betsson in LatAm?
Betsson’s Inkabet acquisition is designed to further strengthen and expand the company’s existing footprint in the Latin American region, which is strategically important for the firm, the group said in an official press release.
Through its subsidiary, SW Nordic Limits, Betsson has been able to secure the acquisition of Inkabet for the sum total of $25 million. The company will proceed by paying an additional $4 million, contingent on Inkabet reaching pre-agreed EBIT targets in the six months following the closing of the deal.
Betsson will also honor a deferred payment of $5 million, $3 million of which is payable on December 31, 2020 and another $2 million is payable on December 31, 2023 if no claims have been lodged. The total sum of the purchase is equal to 3.8 times Inkabet’s EBIT results for the 12-month period ending in June 2021.
Betsson is using its revolving credit facility (RCF) to cover the deal and allow itself to remain financially flexible in its pursuit of new assets in pivotal markets. Inkabet has an EBIT of $8.8 million and was launched in 2012. The company posted a 146% revenue growth in the 12-month period that Betsson uses as a point of reference.
Commenting on these events, Betsson AB CEO Pontus Lindwall had this to add:
“Through this transaction, Betsson continues to build market share in the LatAm region, following the previous acquisitions of JDP Tech Ltd, Suaposta and Colbet. This strengthens our position in a strategically important region where we have performed well and have big ambitions for the future.”
The company is following up on a similar expansion of its South American footprint when it partnered with Scientific Games’ OpenGaming platform in Colombia, allowing it to leverage SG’s powerful gaming platform and all associated content products.
Betsson has been focused on expansion in recent months. Outside of Latin America, the company is eyeing new opportunities in the Canadian sports betting market with the return of single-betting events. Canada is quickly developing in the wake of regulating its market and allowing locals to turn to fully-regulated options close to home.
The company also posted strong results for the second quarter of the year as revenue reached $210.2 million or SEK1.752 billion, building on the momentum of its first quarter.
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