Stella Advisors acted as financial advisors to the shareholders of Betsafe on the sale to Betsson.
Betsson acquires Betsafe from a number of private individuals, some of whom are founders and employees. Betsson pays an up-front purchase price of EUR 32.5 million, of which around half is payable in cash and the other half in Betsson B shares. In addition to the up-front purchase price, an additional purchase price, based on the development of the acquisition and the integration thereof during 2011, may become payable by Betsson. Such additional purchase price, if any, will amount to a maximum of EUR 27.5 million, which implies that the total maximum purchase price is EUR 60 million.
"This is an attractive solution for Betsafe as we share views with Betsson on how to become successful on the global gaming market. Two strong cultures, with common values and goals, now join forces with the aim to further develop the business and eventually become one of the largest and most profitable players in the market" says Henrik Persson, CEO of Betsafe
In 2010, Betsafe increased its revenues with 119 per cent, and during the period 1 May 2010 - 30 April 2011, revenues amounted to EUR 33.4 million and operating profit (EBIT) amounted to EUR 6.9 million. During March 2011, the number of real money players amounted to 84,000 and the number of employees was 148. In addition to incremental earnings, Betsson believes that it will benefit from synergies that will materialize as the result of e.g. integration of platforms and supplier contracts.
Completion of the transaction is conditional upon customary regulatory approvals.