Betsson AB announced that they’re continuing their expansion in the South American region, and they agreed to proceed and secure yet another online business of casino operators and sportsbooks – Inkabet.
Their CEO, Potus Lindwall, said this would strengthen their position in strategically important areas where they’re already successful and provide them with a re-fill of future ambitions.
Betsson Is Betting Big on South America
Inkabet is a casino and sportsbook operator that primarily focuses on the western part of South America. They are an online business-to-consumer type of company, providing end-user experience in the sportsbook and igaming field. The latter one has a more in-depth value, as the live online casino, such as live roulette online games, is forecasted to occupy 50% of the casino market sales by 2023, so it’s understandable that Betsson is aiming to cover as much ground as possible in this segment. Even more so, since Betsson is a known giant in online gambling, already providing its many subsidiaries with games and slots to people worldwide.
The agreement has got signed by a subsidiary of Betsson, SW Nordic. This move shouldn’t come as a surprise to anyone. Betsson has been eyeing South America for some time now, and they are making moves to develop their presence in the region. For example, they recently made a partnership agreement with the online slots provider Endorphina in Prag. In addition, they launched a series of online games in Latin America, expanding options for Betsson’s players in places like Peru and Chile.
These two moves confirm Betsson has ambitions in South America, calling it “a strategically important region for the company.” Furthermore, the CEO of Betsson, Pontus Lindwall, had this to say: “Through this transaction, Betsson continues to build market share in the LatAm region, following the previous acquisitions of JDP Tech Ltd, Suaposta, and Colbert.”
What Does the Deal Contain?
The price of the acquisition is $25 million. That means SW Nordic will take all the business activities, operations, and related assets that make the Inkabet brand. But not only that. Betsson will pay up to $4 million depending on Inkabet’s revenue and EBIT targets six months after the deal. EBIT stands for “earnings before interest and taxes” and is a standard measure of a company’s value in the business world. Betsson’s price can be calculated as 3.8 times EBIT in the last 12 months of Inkabet, with June 2021 taken as the previous month.
This deal seems like an intelligent move for Betsson, considering Inkabet has seen tremendous growth in the last few months. First launched in 2012, the brand has seen revenue clock in at $25.2 million in the previous 12 months, making a 146% increase compared to the 12 months before. Of course, only time will say if Betsson betting big on South America with all their recent moves was a gamble worth taking, but it is looking quite good now.