Betsson has announced two developments that are going to serve as key factors of its growth in 2023. The first is the acquisition of betFIRST, and the second is a strategic partnership with Groupe Partouche. Both initiatives are strategic in nature and align with the long-term mission statement of Betsson. The venture intends to deliver profitable growth and locally regulated markets. While that is a global approach, the recent announcements signify that Betsson is aiming for an expansion specifically in the Belgian market.
Betsson has acquired betFIRST by purchasing all its shares for a cash deal. The contract is worth €120 million, out of which €117 is on a debt-free basis. The remaining €3 million earnout will be handed over subject to the fulfillment of certain conditions. These are grounded in its operations and positivity in the financials.
Initially, the consideration is worth 10x betFirst’s EBITDA for the 2023 financial year.
Betsson gains access to the Belgian market through 450 points held by betFIRST in the region. The net revenue for the last financial year stands at €51.2 million with an adjusted EBITDA of €10 million. Numbers are stunning, with a proven track record of serving its customers well. However, the deal is as good as the regulatory license both pocket after during the partnership.
Groupe Partouche partnering with Betsson is indeed a turning point for the brand. It will, similar to the partnership with betFRST, gain access to the Belgian market and an increased customer base. The group also holds ventures in Switzerland and France to further offer the opportunity to expand.
Groupe and Betsson have expressed their commitment to expanding through the new collaboration and finding ways to take this partnership forward.
Pontus Lindwall, the Chief Executive Officer & President of Betsson AB, said that their business is scalable and new initiatives undertaken by them will add to their revenue & profitability. Talking about betFIRST, Pontus has highlighted that the brand is a strong strategic fit for its mission of entering a new market, especially in the region that is regulated or is about to fall under regulations. They have also expressed excitement about partnering with Groupe Partouche, adding that they align well with their strategy.
With a new acquisition on the table, customers can expect new casino offers in Belgium by the end of 2023. This is an extended and tentative timeline. Actual deliverables may happen much before the end of this year. Crypto sports betting is likely to see a jump in the number of users or bets placed. The acquisition deal could conclude by July 05, 2023, with no conditions of regulatory requirements.
The acquisition is backed by the financial and legal expertise of Lazard and Gernandt & Danielsson, respectively. The cash deal is supported by the strong numbers on the balance sheet and credit facilities. Belgium has had regulations for the online gaming market in place since 2011.