Stockholm-listed lead generation specialist Net Gaming is expanding its presence in the German, Austrian and Swiss iGaming markets through the acquisition of a range of affiliate assets.

The company has signed a letter of intent to acquire the assets, pending the completion of its due diligence process, for a purchase price of €2.29m using existing cash resources.

The acquisition also includes an earn-out of up to €1.25m, based on the acquired assets' EBTIDA in the 12 months following completion. 

The acquired assets are expected to generate quarterly sales of around €200,000, with an operating margin of approximately 75 per cent.

"I am very pleased that we have the opportunity to strengthen our position in the DACH region. This is an exciting market which we consider to have good growth opportunities ahead," Net Gaming chief executive Marcus Teilman said.

"In addition, completion of this transaction will give us further opportunities to grow our existing operations in the region, and expand these assets to other markets."

The acquisition is the second agreed by Net Gaming in 2018, following a deal in February to acquire a range of affiliate assets focusing on Central Europe. The company also sold off the concept, trademark and domain name for the Battle of Malta poker tournament, a competition run by its Highlight Media subsidiary, that same month.

Shares in Net Gaming Europe AB (AKT:NETG) were trading up 3.07 per cent at SEK9.74 per share in Stockholm Monday morning. 

Related

GIQ Magazine Digital Edition