Betsson AB: Betsson acquires the Automaten brands
STOCKHOLM -- February 19, 2013
Betsson AB (STO:BETSB) has today entered into an agreement to acquire the
brands Sverigeautomaten.com, Norgesautomaten.com and Danmarksautomaten.com
from Cherry, for a consideration of SEK 286 million, of which SEK 60 million
constitutes an additional purchase price. In practice, the deal implies that
Betsson AB’s subsidiary in Malta, which already today is responsible for the
operation of the Automaten sites, now also takes over the brands and the
responsibility for the external marketing of the brands. Simultaneously,
Cherry acquires the brand Cherrycasino.com from Betsson AB’s Maltese
subsidiary, for a consideration of SEK 1 million.
The initial net consideration of SEK 225 million will be paid by the delivery
of 1,063,895 newly issued Betsson B shares. The additional purchase price will
be paid in cash after 12 months.
The Automaten brands delivered revenues in 2012 of SEK 168.2 million, which
already are included in Betsson’s total revenues. In total, the deal implies
that Betsson, calculated on 2012 levels, makes a yearly saving of SEK 52.7
million in costs corresponding to the net effect of savings of revenue share
to Cherry from the previous partner agreement and additional marketing spend
to be carried out by Betsson. The deal is hence done on a level corresponding
to an EBIT multiple of 5.4 and will give a positive EPS effect from the second
”The deal is in line with our strategy to focus on B2C in our core markets in
the Nordics. Our judgment is that the acquired brands will develop stronger
internally because we can use the marketing power and scale advantages of the
entire Betsson group.” says Magnus Silfverberg CEO of Betsson AB.
Betsson AB’s Core Business consists ofowning and administering shareholdings
in companies which, themselvesor through partners, offer gaming to the end
users via the internet. Betsson AB owns Betsson Malta which operates gaming to
the end users either through theirown websitesor through partnerships.
Betsson Malta offers Poker, Casino, Sportsbook, Scratch Cards, Bingo and
Games. The customerscome primarily from the Scandinavian countries and other
parts of Europe. Betsson AB is listed on NASDAQ OMX Nordic Mid Cap List,
This information was brought to you by Cision http://news.cision.com
Magnus Silfverberg, CEO and President
phone +46 (0)8506403 00
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