Spiffbet set to acquire Goliath Casino operator
Nasdaq First North-listed igaming supplier Spiffbet has agreed a deal to acquire Goliath Holding, the parent company of online casino brand Goliath Casino.
Under the agreement, which remains subject to approval, Goliath will become a wholly owned subsidiary of Spiffbet
Spiffbet will offer Goliath shareholders the opportunity to exchange their shares for newly issued shares in Spiffbet. Up to 6,632,331 Spiffbet shares will be issued at a price of SEK0.401 each, corresponding to a value of approximately SEK2.6m (£227,229/€252,518/$296,160) and representing 3.8% of all Spiffbet shares.
In addition, Spiffbet plans to carry out a private placement to a group of selected investors, including some shareholders in Goliath, in order to partially finance the acquisition. This will see SEK856,073 worth of shares made available.
Goliath’s board of directors has recommended that the deal go through, but the acquisition also requires the approval of 90.0% of Goliath shareholders. Some 84.2% of the operator’s shareholders have already indicated they will support the deal.
Spiffbet envisages securing approval to complete the deal before the end of the month, with Goliath expected to make a positive profit contribution to the supplier during the second half.
“The acquisition of Goliath strengthens our position in the online casino and is an important part of our acquisition plan,” Spiffbet chief executive Henrik Svensson said. “Through Goliath, Spiffbet gets access to a new brand that is internationally viable and that we can develop and expand into new markets.”
Svensson added that the new acquisition will complement its merger with Metal Casino, details of which were made public in March this year.
“Furthermore, the coordination benefits with Metal Casino are clear,” Svensson said. “Goliath fits in well with our business and complements our market presence with a different profile and partly other markets.”
Goliath, which mainly targets higher spending players, has so far had 25,000 depositing customers, with some SEK37.0m deposited by users in 2019. Net gaming revenue amounted to SEK15.0m last year.
Goliath chairman Claes Wenthzel added: “Through the acquisition, Goliath gets a fresh start and can, through Spiffbet, continue to develop and be part of a larger group of companies where other brands are included.
“Spiffbet has strong support from its owners to be the locomotive in the consolidation that is taking place in the gaming industry and I look forward to being a part of this journey.”