Jackpotjoy makes final earn-out payment on Botemania acquisition

Online bingo-lead operator Jackpotjoy plc announced Monday that it has made the final earn-out payment for its Botemania acquisition, a Spanish bingo business. This final payment as well as a first milestone payment amounted to GBP 63.5 million and has been comfortably met by existing cash resources, management advised in a statement.

The Jackpotjoy segment, which includes the Jackpotjoy, Starspins and Botemania brands, was acquired from Gamesys Limited in April 2015 with further earn-out payments dependent on the future operating success of the business.

Jackpotjoy plc completed its earn-out payments for the Jackpotjoy and Starspins brands on 22 June 2017 and Monday’s payment represents the final instalment for the Botemania brand.

The Group may make two small final milestone payments of no more than GBP10 million in aggregate should the Jackpotjoy brands attain certain EBIT targets for the 12 months ending March 2019 and March 2020, management revealed.

Neil Goulden, executive chairman of Jackpotjoy plc, said: “I am pleased that Jackpotjoy Group has paid the final instalment relating to the earn-out of our Spanish business, Botemania, which has performed strongly since it was acquired in 2015. The earn-out payment has been made comfortably from existing cash resources, highlighting our strong free cashflow generation and the strength of our balance sheet.”

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