Mr Green targets Redbet growth after Evoke takeover
Mr Green has announced big plans for Redbet after acquiring the operator’s parent company, Evoke Gaming, in a €7m ($8.3m) deal.
Mr Green said it expects to achieve significant synergies and intends to expand Redbet in Mr Green's existing and future markets.
Redbet offers sportsbook, casino and poker, and is in a “strong position” in Sweden and the UK. Mr Green believes that Redbet has “major potential to grow in parallel with Mr Green and develop into a global brand”.
Evoke Gaming’s other subsidiaries include Vinnarum Casino, Bertil and Mama Mia Bingo.
“Evoke Gaming is an ideal fit for our business plan and strategy,” said Per Norman, chief executive of Mr Green & Co.
“We are pursuing our strategy of nurturing a small number of strong brands that can work globally. With Redbet and Mr Green, we have two immensely strong brands addressing different segments, and we see major potential to expand Redbet into our existing markets.”
Mr Green will pay an initial €7m in cash for Evoke, with an additional purchase price of €1.5m payable if certain conditions are met.
In 2016, Evoke’s revenue amounted to €15.5m with EBITDA at a loss of €4.6m following a major outlay on a new technology platform. Mr Green said Redbet had demonstrated “favourable growth” since its relaunch in summer 2017.
Mr Green added that the acquisition will contribute positively to its EBITDA and cash flow as of 2019, with synergies of more than €2.5m per year achievable with full effect in 2019.
Fredrik Staël von Holstein will remain as head of Evoke Gaming's operations after the transaction has been completed and will become a member of Mr Green’s management team in Malta.
“Evoke Gaming is on the threshold of a significant turnaround. Mr Green will give us the muscles to continue growing internationally in an effective manner,” said Von Holstein.
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