14th Jun 2022 09:15
(Alliance News) - Entain PLC on Tuesday said it has struck a deal to acquire a Dutch sports betting operator for an initial EUR300 million.
The Ladbrokes owner said the consideration to buy BetEnt, which trades as BetCity, could climb to as high as EUR850 million. The deal includes a deferred contingent consideration of up to EUR550 million.
Entain, however, expects the deal to cost just EUR450 million in total. Entain is acquiring BetCity from Sports Entertainment Media BV.
The acquisition is expected to be sealed in the second half of the year. It will be funded from existing cash resources and drawings from Entain's revolving credit facility.
BetCity is based in Amsterdam and received an online sports betting and gaming licence from the Dutch watchdog back in October.
"The newly regulated Netherlands online market is highly attractive and fast-growing across both sports betting and gaming. Since its licensing in October 2021, BetCity has delivered rapid growth, establishing a leading position with approximately 20 market share during the fourth quarter of 2021. This acquisition will create a strong market operator with significant growth opportunities, in line with the group's strategy," Entain said.
"BetCity's offering is highly complementary to Entain's bwin and Party brands which are awaiting approval for a licence to operate in the Netherlands."
Entain now expects Dutch licence approval for bwin and Party in the "latter part of this year". Regulator KSA has requested "additional documentation as part of the ongoing application process".
The company in September had said it expects to be granted a licence in the "first half of 2022".
Entain shares were down 0.3% at 1,336.50 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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