Entain, the global sports betting, gaming and interactive entertainment group, announces that it has agreed to acquire the entire share capital of BetEnt B.V., which operates under the name BetCity.nl, from Sports Entertainment Media B.V. for an initial consideration of €300 million.
BetCity is one of the leading online sports betting and gaming operators in the Netherlands. Headquartered in Amsterdam, BetCity received an online gaming and sports betting license from the KSA (Kansspelautoriteit), the Dutch Gaming Authority, in October 2021.
The newly regulated Dutch online market is very attractive and fast-growing in both sports betting and gambling. Since obtaining the license in October 2021, BetCity has achieved rapid growth, establishing a leading position with approximately 20% market share during the fourth quarter of 2021. This acquisition will create a strong market player with significant growth opportunities, in line with the Group's strategy.
The BetCity offering is highly complementary to Entain's bwin and Party brands, which are awaiting approval for a license to operate in the Netherlands - now expected during the latter part of this year, as the KSA has recently requested additional documentation as part of the ongoing application process. The combination of BetCity's local expertise, strong brand and broad and diverse user base, with Entain's global scale and market-leading platform, will provide customers with a broader offering of compelling products, fresh content and new experiences. Melvin Bostelaar, CEO of BetCity, along with other key members of the management team, will remain with the company.
Consideration structure:
The initial consideration of €300 million will be paid in cash on completion of the transaction, with an earn-out payment to be paid in early 2023 based on BetCity's actual results in the 2022 financial year. The total payable based on current expectations is €450 million. However, depending on BetCity's performance, the maximum consideration is capped at €850 million (approximately £729 million1). The combination is expected to generate approximately €28 million (approximately £24 million1) of cost synergies, primarily technology, content and royalty benefits, by the end of 2026.
The acquisition is expected to be completed during the second half of 2022.
Jette Nygaard-Andersen, CEO of Entain, commented regarding the acquisition:
"We are delighted that BetCity is joining Entain and are excited about the significant opportunities in the newly regulated Dutch market. This acquisition will provide customers with an even better experience as we combine BetCity's local expertise and brand with Entain's market-leading, customer-centric platform. This transaction reinforces our growth strategy of operating in attractive regulated markets. We look forward to working with Melvin and the BetCity team."
Melvin Bostelaar, CEO of BetCity, said:
"We are pleased to join forces with a world-class group in Entain. Together we will be well placed to maintain a strong position in the Dutch market for years to come. Entain's market leading platform, technology, established brands and global scale provide a fantastic opportunity to expand and enrich our offering to customers. Both BetCity and Entain put the customer at the center of everything we do, and Entain's core values and philosophy around responsible gaming, compliance and corporate culture align perfectly with BetCity's. We look forward to a bright future together."
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