Swedish online gambling operator Betsson AB announced the acquisition of Lithuanian gambling company Lošimų strateginė grupė, UAB, operating under the TonyBet brand. Lithuania has recently regulated its gambling market and TonyBet is now one of the leading operators to be providing iGaming products to local customers.
Betsson said that it would pay an initial consideration of €4 million in cash upon the deal’s closure. TonyBet generated revenue of €3 million and adjusted EBIT of €0.6 million during this year’s first half. With that said, Betsson would pay 3.6x adjusted annualized EBIT for 2016. If the Lithuanian gambling operator achieves certain milestones, former owners will receive the additional amount of €2 million as a performance bonus. The Swedish gambling group said that the transaction is expected to be completed within a month.
Sorainen Lithuania and Gernandt & Danielsson are legally advising Betsson in regards to the pending transaction and PwC acts as a financial and tax adviser. Tark Grunte Sutkiene is the legal adviser for the sellers.
As mentioned above, Lithuania imposed new gambling regulations in January. TonyBet has been one of the largest operators to have been running gambling business in the country since then. It offers online sports betting options and manages over 20 betting shops across the country.
Under a recent agreement TonyBet signed with internationally recognized provider of online casino content NYX Gaming Group, the gambling operator will soon roll out a selection of its new partner’s online slot titles, both in-house developed and ones provided by third-party suppliers.
The TonyBet brand was launched in 2009 by former Lithuanian poker player Antanas Guoga. Apart from its home country, the operator also provides gambling options in the UK and Danish regulated iGaming markets.
Through its latest acquisition, Betsson will be able to add another established brand to its portfolio and to operate in Lithuania, Latvia, and Estonia, thus extending its presence in the Baltic region.
Commenting on the acquisition deal, Betsson President and CEO Ulrik Bengtsson said that it comes as a good strategic fit for his company as it strives to generate more revenue from regulated markets. After securing presence in three Baltic countries, the gambling operator will continue expanding across Europe, both through other acquisitions and organically, the executive revealed.
