London-listed betting and gaming operator Entain has completed the acquisition of leading Dutch iGaming operator BetCity in a deal which is expected to cost €450m.
Following an announcement last June, Entain has acquired BetEnt (which trades under the BetCity.nl brand) for an initial consideration of €300m, with a balancing payment to be paid once BetCity’s financial performance for 2022 is confirmed.
A further contingent payment will be paid in early 2024, based on 10x BetCity’s EBITDA for the financial year 2023, less amounts already paid out. In addition, a final contingent payment of €50m be paid on delivery of synergies and a successful migration to the Entain platform.
On current expectations, the total consideration payable is expected to be €450m. However, dependent on the performance of BetCity, the maximum consideration is capped at €850m.
The combination is expected to deliver €28m of cost synergies, predominantly from technology, content and royalty benefits, by the end of 2026.
“We are pleased to have completed the acquisition of BetCity,” said Entain CEO Jette Nygaard-Andersen. “The combination of BetCity’s local expertise and strong brand, alongside Entain’s global scale and market-leading platform provides customers with an enriched and broader offering of engaging products, fresh content and new experiences.
“This transaction further underpins our growth strategy of operating in, and expanding further into, attractive regulated markets. We look forward to working with Melvin and the BetCity team as we execute on the significant opportunities in the Dutch market.”
The initial consideration has been funded from the proceeds of Entain’s re-financing last October and existing cash resources.
Shares in Entain plc (LSE:ENT) were trading 0.92 per cent higher at 1,478.50 pence per share in London earlier Thursday.