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Betsson AB announced today that the Group has acquired the leading Belgian gaming and sports betting operator betFIRST. The acquisition is valued at EUR 120 million. Up to EUR 3,000,000 will be paid as an earnout, subject to certain conditions, in cash. Betsson, the leading French casino operator and publicly listed Betsson, announced today a new partnership to provide online casino services on regulated markets. The first joint online casino should launch in Belgium by 2023, pending the official obtaining of licenses. Both of these strategic initiatives are in line with Betsson’s long-term ambitions for profitable growth.
Betsson agreed to purchase all shares of the betFIRST group, which operates in Belgium a sports betting business and gaming under the betFIRST brand. Total consideration for the acquisition will be EUR 117m on a debt-free and cash basis. Betsson can also pay up to EUR3 million in earnouts, subject to the delivery of certain financial targets. The initial purchase price is equal to 10.0x betFIRST’s estimated EBITDA in the financial year of 2023.
BetFIRST was established in 2011 and is one of the leading B2C operators in the localized online gaming market. It offers sports betting, dice games, and other gambling services. BetFIRST, a leading sports betting brand in Belgium, has a track record for successful customer acquisitions and revenue growth. betFIRST has a Belgian license for both online sports betting as well as online dice games. The company operates approximately 450 retail points in Belgium, and owns a gaming centre. betFIRST’s last financial year ended 31 December 2022 saw net gaming revenues of EUR 51,2 million and an adjusted EBITDA figure of EUR 10,0 million.
Betsson and Groupe Partouche, a leading French casino operator, will join forces to create a new online casino that is tailored to local tastes. Groupe Partouche has land-based casino operations in France, Switzerland, and Belgium. It also holds an offline license that can be converted to an online license. A full range of online gambling products can be made available to Belgians with this license. The aim is to launch an online casino in Belgium by 2023, assuming the Belgian regulator grants the necessary licenses. Betsson Groupe Partouche is committed to expanding their collaboration and exploring new ways to extend the partnership.
Betsson will benefit from the acquisition of betFIRST, the partnership with Groupe Partouche and a greater share of revenues generated in local regulated markets. Betsson plans to operate the betFIRST business in its current form while exploring synergies on a mid-to long-term basis.
Pontus Lindwall commented, “We are excited to enter the Belgian market with Groupe Partouche. We also see a strategic fit in the acquisition of betFIRST. Our growth strategy at Betsson revolves around expanding our presence in new markets, especially those that are regulated locally or will soon be regulated. This strategy is very aligned with Belgium, a country where the online gambling market has been regulated since 2011. “Our business model is highly scaleable, and these initiatives are going to add revenue and increase our profitability over the long term.”
Betsson can finance the acquisition using cash on its balance sheet as well as existing credit facilities.
The acquisition of betFIRST will not require regulatory approvals. It is expected to take place on or about July 5, 2023.
In connection with the acquisition, Betsson engaged Lazard to act as its financial advisor and Gernandt & Danielsson to serve as its principal legal adviser (along with Van Bael & Bellis as well as Edson Legal in Belgium as legal advisors).
