Gambling operator Unibet Group plc has just announced that it had signed a deal with Stan James Group plc to purchase the latter company’s online business and thus acquire full ownership of the brand. The transaction is yet to receive the necessary regulatory approvals and is planned to be closed sometime in the third quarter of the year.
Stan James offers a number of online gambling options such as casino games, poker, sports betting, etc. in the regulated UK market via its website www.stanjames.com.
Unibet is to pay the total amount of £19 million for its latest acquisition. The Group announced that the purchase price is fully payable in cash. The deal is to benefit the gambling company in a number of ways. For instance, it would strengthen its position in the UK market, which has been estimated to be worth £2.7 billion in 2015.
By the end of May, Stan James’ online operations generated GWR of £10.5 million and EBITDA of £1.4 million. Thus, it could be said that the acquisition price is about six times this year’s EBITDA, excluding any potential synergies resulting from the deal.
Henrik Tjärnström, Chief Executive Officer of Unibet, commented that they have been looking for ways to strengthen the company’s position in the UK for quite some time now. He also pointed out that he believes Unibet would be perfectly able to further diversify Stan James’ product offering in the country, adding casino and live streaming to its catalog and improving its mobile business.
Denis Kelly, Chief Executive Officer of Stan James, said that they are delighted with the opportunity to join Unibet. He pointed out that Unibet’s marketing experience and financial strength combined with Stan James’ product offering in the regulated UK gambling market would result in a substantial increase in the Group’s UK market share.
Stan James is headquarterd in Gibraltar. Currently, there are about 150 people employed at the company. Under the standard European Union laws, the employees are to transfer their employment to their new owner.
Unibet’s headquarters are located in Malta. The gaming company provides its services in more than 20 languages via its Unibet and Maria brands. At present, the Group has more than 10 million customers in 100 countries across the globe.
