Betsafe: Final payment made by Betsson

The Swedish gambling group Betsson’s final payment of Euro 12.5 million for Betsafe (through the acquisition of the holding company Artic Invest AS – see previous reports) has been achieved, the company reported this week.

Betsafe is a Malta-licensed operation focused on the Nordic markets and offering sports betting, casino and poker to its clients.

On 15 June 2011, Betsson paid an initial purchase price for the operations of Betsafe in the amount of Euro 34 million, made up of cash and cash equivalents at a value of Euro 19.6 million and class B shares in Betsson at a value of Euro 14.4 million.

In addition, Betsson paid Euro 7.4 million for acquired cash and cash equivalents and acquired net income. Based on the development of the acquisition and its integration during 2011, an additional purchase price not exceeding Euro 27.5 million may become payable by Betsson, which means that the total purchase price for the operations will not exceed Euro 61.6 million.

Betsson has an option to pay any additional purchase price in cash or by way of transfer or issue of Betsson shares.  Betsafe reached the targets in 2011 for the additional purchase price amounting to Euro 15 million. The conditions are fulfilled for the remaining part of the additional purchase price, i.e. up to Euro 12.5 million.

Betsson directors decided to pay the remaining Euro 12.5 million by way of the issue of Betsson shares. The new class B shares will be subscribed for by the sellers of Betsafe. The subscription price for the new class B shares amounts to approximately SEK 182 per share.

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