M&A
XLMedia’s Sale to Gambling.com European and Canadian Projects
XLMedia’s Asset Sale
XLMedia has decided to sell its sports betting and gaming assets in Europe and Canada to Gambling.com
Betsson AB has announced its acquisition of betFIRST – sports betting and gaming operator in Belgium. The agreement, worth €120 million, includes paying €117 million upfront and an extra €3 million if certain financial goals are met.
Betfirst has licenses to offer online sports betting and dice games in Belgium. It runs about 450 retail stores all over the country, including a popular gaming arcade. In the last fiscal year ending in December 2022, betFIRST made €51.2 million in gaming revenue and had adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of €10 million.
Betsson intends to keep betFIRST’s sports betting business running as usual and look for ways they can work better together in the future. They expect to finish the acquisition by July 5, 2023.
Belgium has clear rules for online gambling overseen by the Belgian Gaming Commission. Even though Betsson doesn’t need approval for the acquisition, they still have to follow the rules and get the right licenses to meet the Belgian regulator’s standards.
In addition to the acquisition, Betsson has formed a partnership with Groupe Partouche. Together, they aim to provide online casino services in regulated markets, starting with a joint online casino offering in Belgium in 2023. However, the successful launch of the online casino offering is contingent upon obtaining the necessary licenses from the Belgian regulator.
Groupe Partouche operates land-based casinos in France and Switzerland and holds offline casino license in Belgium, which can potentially be expanded to include an online casino license.
To pay for the acquisition, Betsson will use the money it already has and borrow some if needed. They’ve hired financial advisor Lazard and legal advisors Gernandt & Danielsson, Van Bael & Bellis, and Edson Legal to help with the process.
— Pontus Lindwall, CEO and President, Betsson AB
We are very excited about entering the Belgian market together with our partners Groupe Partouche and see a strong strategic fit with the acquisition of betFIRST. 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.
Betsson’s recent acquisitions are part of their plan to grow. They want to use their business model to enter the Belgian market and expand in other regulated gambling countries.
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