Betsson Buys NordicBet

Betsson AB, the company that owns and operates Betsson Casino and Casino Euro has announced that it will acquire Nordic Gaming Group (NGG), which operates NordicBet, Triobet and Tobet, at a maximum cost of 85 million Euros. This acquisition will fasten Betsson’s position as the largest online gambling operator in the Scandinavian market and provide a solid alternative to various online gambling operators that function as part of some state monopoly.

Betsson is set to pay for NGG an initial purchase price of 65 million Euros, with 60 million Euros paid in cash and another 5 million Euros to be paid either by cash or using Betsson shares based on an historic 10-day average share price. Furthermore, depending on NGG performance in 2012, Betsson might be liable for an additional payment of 20 million Euros, bringing the maximum deal price to 85 million Euros.

Most market analysts expect Betsson to make the additional 20 million Euros payment since NGG is poised to have an excellent year in terms of revenues based on its 2011 performance when NGG increased its revenues by a staggering 37 percent, with a fifth of all its revenues coming from its sportsbook. NGG also boasts over 90,000 depositing customers which will be a welcomed addition to Betsson’s client base.

Betsson is set to profit from this deal not just in terms of increased presence on selected Scandinavian markets and integration of new technologies in some of Betsson’s existing brands, but will also provide Betsson with a much needed injection of qualified staff as all of NGG 185 employees will be added to the ranks of Betsson employees thus easing the current frantic recruitment campaign that Betsson is in the midst of.