Swedish gaming operator Betsson has completed the acquisition of Georgian online and land-based gaming operator Europe-Bet for a total maximum purchase price of US$85m.
The company first announced the deal to acquire Europe-Bet owner Chempionebi 111 LLC and associated companies at the end of last month for an initial purchase price of $50m.
In addition to that, an additional sum of a maximum of $35m may be paid up to one year after completion, provided that betting regulations in Georgia remain unchanged. This gives a total maximum purchase price of $85m.
Betsson expects that the acquisition will contribute positively to its financial result from July 22nd and onwards.
The deal strengthens the operator’s strategic position in the Eastern European region, with Europe-Bet the second largest operator in the regulated Georgian market with close to a 30 per cent share, behind only Adjarabet.com.
The acquisition has been financed through a renewal of a credit facility amounting to €35m, as well as a new credit facility of SEK700m. These facilities are both revolving credit facilities which give an attractive financial flexibility, the company said.
Gernandt & Danielsson Advokatbyrå and Dechert Georgia have acted as legal advisers to Betsson in connection with the transaction and PwC has acted as financial adviser.