Stockholm-listed gambling operator, Betsson, has announced the acquisition of niche horse betting operator, RaceBets, for €34 million. The proprietary horse racing product complements Betsson’s offering and will benefit all of their brands.
Licensed in Ireland, the UK, Germany and Malta, RaceBets offers a competitive product with betting on more than 250,000 races available every year. Founded in 2005, it was launched in Germany in 2007 and has been covering Irish and UK horseracing markets since 2012. As one of the most popular betting sports in Europe, with an estimated total worth of €3.5 billion in Europe, this is an important expansion of Betsson’s horse racing betting offering.
“Horse racing is important in many of our markets and the key rationale of the acquisition of RaceBets is to enable our subsidiaries to accelerate the launch of a world class horse racing product on all core brands,” announced Ulrik Bengtsson, chief executive and president of Betsson AB. “This will help fuel organic growth in strategic markets, such as the UK and Germany.”
Betsson has acquired RaceBets from its founders and the German Thoroughbred Racing Association with an initial consideration of €34 million, to be paid in cash. There is a remaining purchase consideration of €6 million that may be paid, subject to specific financial and non-financial milestones being met, resulting in a maximum consideration for RaceBets of €40 million.
Seventy five percent of RaceBet’s revenue is generated from locally regulated markets, specifically the UK and Germany. It generated €9.3 million in revenue in 2015 and EBIT of €3.36 million while it experienced annual growth rate of 12 percent from 2013 to 2015.
Subject to gaining relevant regulatory approvals, the deal is expected to be closed at the beginning of 2017.