Swedish online group Unibet is buying iGame Holding, a specialist gambling operator with a focus in the Nordics and Central Europe offering online casino, poker and sports betting through seven local brands for €59m.
The transaction will increase Unibet’s market share in strategic Nordic markets ahead of re-regulation that is expected to develop in the coming years.
For the second quarter of 2015, iGame’s number of quarterly active customers amounted to 75,000. Earn-out payments may be payable based on iGame’s results for the period up to 30 June 2016. The earn-out payment is calculated on a multiple of 6.2 times EBITDA up to a cap of €20m including an element for over-performance. The current management team of iGame, under the leadership of CEO Tommi Maijala, will remain with the business and are subject to retention arrangements to deliver the business plan during the next three years. In total, iGame has approximately 130 employees, the majority of whom are based in Malta. The combined group expects to achieve synergies from the transaction, including a wider product portfolio, effective marketing, economies of scale associated with third-party procurement of products and media.
“The iGame brands are well known in their local markets and we see a lot of potential by combining our bigger scale, mobile, cross channel and product expertise with their local focus. As the majority of the iGame revenues comes from Casino, our joint plan is to keep a number of these brands as a complement to our existing brands, Unibet and Maria,” said Henrik Tjärnström, CEO Unibet.
Tommi Maijala, CEO of iGame, said: “We are very happy to be joining the Unibet Group. While Unibet is larger than iGame, we share the same passion for serving our customers and improving the operations every day. I have great comfort and trust in the long-term strategy of Unibet and highly respect all the valuable work Unibet has done for the gaming industry. Through this deal our customers will quickly see the benefits from our ability to improve the product offering. Our ability to accelerate the growth and development of the business will also provide new opportunities for our great team.”