Betsson, a leading Swedish gambling group, is pleased to reveal that it has signed a deal in terms of which it will expand its Baltic markets presence by acquiring Losimu Strategine Grupe, the holding company of TonyBet’s Lithuanian business.
The agreement signed by the parties will see Betsson pay a cash amount of €4 million for the group as soon as the deal is approved by the boards and is expected to officially close within one month.
Included in the agreement is a €2 million performance based bonus that will depend on certain performance benchmarks in 2017.
Although TonyBet holds online gambling licenses in Latvia, Denmark, the United Kingdom, Lithuania and Estonia, the Betsson acquisition will be limited to TonyBet’s operations in Lithuania.
According to Betsson, TonyBet’s Lithuanian business generated revenue of €3 million and adjusted earnings of €550k in the first half of this year.
The President and Chief Executive Officer at Betsson, Ulrik Bengtsson, commented on the deal signed between the parties by saying that they see strong synergies in this acquisition through migration of the operator to Betsson’s technical platform and development of the casino offering. He also confirmed that Betsson has secured all TonyBet’s Lithuanian assets for 3.6 times the firm’s earnings before interest and tax to date for the current financial year.
Bengtsson also said that this acquisition is a good strategic fit for Betsson as the group is endeavoring to increase revenue from locally regulated markets. He added that they have now consolidated their presence in the Baltic region by ensuring local licenses in all three markets and continue to pursue growth across Europe, organically and through acquisition.
