The upcoming acquisition will allow Betsson, operating under Swedish gambling laws, to further strengthen its position on both domestic and international gambling markets.
Nordic Gaming Group (NGG) consists of three highly popular gambling destinations: NordicBet sportsbook, Triobet poker room, and one of the best online casinos in Sweden and Europe – Tobet. The deal will include all three gambling operations.
CEO and President of Betsson, Magnus Silfverberg, had the following comments: “Through this transaction, Betsson continues to strengthen its Nordic operations and its leading position amongst the private gaming company alternatives in the Nordic region.”
He also told Sweden gambling news: “In addition, Betsson’s brand portfolio is strengthened significantly within the betting segment, as NGG receives approximately fifty percent of its revenues from sportsbook operations.”
NGG managed to increase its revenues by over 37 percent in 2011, while the Apr 1, 2011 – Mar 31, 2012 revenues made up EUR 50 million. NGG started the year with 90,000 active members, and 185 employees.
Betsson AB will be purchasing NGG from a wide number of individuals, such as founders of the company, members of management team and employees, and external investors as well.
Betsson is rumored to cough up EUR 65 million for NGG, out of which EUR 5 million will be either in the form of Betsson shares or simply in cash. The other EUR 60 million is expected to be paid in cash.
CEO of NGG, Per Hellberg, commented the deal: “For NGG, this is an attractive solution as the company can incorporate Betsson’s global strength into its operations and it strengthens our possibilities to continue to grow rapidly and with good profitability in the Nordic region, the Baltics and Poland.”
He concluded by saying: “The two companies have similar cultures, and we foresee a smooth integration, and believe that we can quickly benefit from each other’s strengths.”