Swedish gambling group Betsson AB announced that it has undertaken further steps to expand its presence into the UK gambling market. It has made a cash offer to acquire UK interactive gaming company NetPlay TV for £0.09 per share or the total amount of £26.4 million.
The deal is yet to be approved by the UK High Court of Justice and NetPlay TV shareholders. Several investors in the gambling company have already provided Betsson with statements of support. The transaction is expected to be finalized in April.
Licensed by the UK Gambling Commission, NetPlay TV currently manages three casino, sports betting, and bingo brands. It also operates a B2B business focused on the provision of online digital marketing services and other related operations. The company generated net revenue of £14.7 million for the six months ended June 30, 2016.
In his comments on the acquisition deal, Betsson CEO and President Ulrik Bengtsson said that they anticipate considerable “cost synergies and operational improvements” from the latest addition to their portfolio of operations. The executive further noted that NetPlay TV will further boost the volume of their Techsson platform and will add more regionally regulated revenue, something that has been an important part of the Swedish gambling group’s growth strategy for a long time now.
Betsson also posted a trading update for the six months ended December 31, 2016. The company hailed the performance of its newly acquired B2B division but pointed out that its B2C business operated less satisfactorily during the reviewed period, attributing the “slightly disappointing revenue performance” to a drop in net revenue margin, the ratio between stakes and net revenue. Betsson noted that it has enjoyed a good start of the year and will now focus on closing the above-noted acquisition deal.
NetPlay TV is not the only UK-facing company Betsson has acquired recently. In December, the major gambling group announced the purchase of Malta-based horse racing bookmaker RaceBets. The latter operator was founded in 2005 and has gradually obtained licenses from Germany’s Regional Council of Darmstadt, the Malta Gaming Authority, the UK Gambling Commission, and the Irish National Excise License Office.
As part of its expansion strategy, Betsson has also purchased Lithuania-licensed gambling operator TonyBet in the final months of 2016.
