Betsson is strengthening its foothold in Belgium by acquiring sports betting and gaming operator betFIRST for €120m and signing a strategic partnership with Group Partouche.
Betsson will pay an upfront consideration of €117m for betFIRST and will pay up to €3m as earnout, subject to delivery on certain agreed financial targets.
In the financial year ending December 31, 2022, betFIRST recorded net gaming revenue of €51.2m and adjusted EBITDA of €10m. The initial consideration for the acquisition is equivalent to 10x betFIRST’s estimated EBITDA for the 2023 financial year.
Completion of the acquisition is not conditional on regulatory approvals, Betsson said, and is expected to occur on or around July 5.
B2C operator betFIRST has licences for online sports betting and online dice games in Belgium. It is also present in the retail market, with approximately 450 points of sale in Belgium, as well as owning a gaming arcade.
As for Betsson’s partnership with Group Partouche, it will entail an online casino offering in Belgium. Group Partouche’s offline casino licence in Belgium can be extended to an online casino licence and Betsson and Group Partouche want to launch the online casino offering in Belgium this year.
Pontus Lindwall, CEO of Betsson, said the company sees a “strong strategic fit” with the acquisition of betFIRST.
He added: “At Betsson, our growth strategy revolves around extending our presence into new markets, particularly in locally regulated or soon-to-be regulated markets. Belgium, where the online gaming market is regulated since 2011, aligns very well with this strategy.
Our business model is highly scalable, and these initiatives will add revenue and strengthen our profitability over time.”
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