Betsson enhances horse racing service with RaceBets acquisition
Betsson has acquired horse betting operator RaceBets for an initial fee of €34 million ($36.6 million).
The firm said that RaceBets will complement its own offering with a proprietary horse racing product and an experienced horse betting trading team, adding that the deal will benefit all Betsson brands.
RaceBets holds licences in the UK, Ireland, Malta and Germany, and offers betting options on more than 250,000 races each year.
The initial consideration is based on 10 times earnings before interest and tax in 2015, and, subject to certain financial and non-financial milestones, this figure may rise to €40 million.
Closing of the deal is expected to go through early next year and remains subject to certain regulatory approvals.
Ulrik Bengtsson, chief executive and president of Betsson, said: “Horse racing is important in many of our markets and the key rationale of the acquisition of RaceBets is to enable our subsidiaries to accelerate the launch of a world class horse racing product on all core brands.
“This will help fuel organic growth in strategic markets such as the UK and Germany.”
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