Mr Green purchases online gaming company Dansk Underholdning

Malta-based and leading European online gaming company Mr Green plans to launch their online casino in Denmark this year after today purchasing all of the shares of the Danish online gaming company Dansk Underholdning.

Dansk Underholdning the multi-branded bingo and casino operator who holds a Danish casino gaming licence has a very strong base in the Danish gaming market. Seeing that Dansk Underholdning was a cash acquisition, the board of directors of Mr Green plans to propose no dividends to be paid for the 2016 financial year at their Annual General Meeting.

Mr Green's stand at SiGMA 2016

Mr Green’s stand at SiGMA 2016

Mr Green offers casino and sportsbook games with a vision of expansion into new geographic markets. This purchase aligns with their vision and is expected to have a positive effect on their earnings per share and operating cash flow in 2017.

In 2016, Dansk Underholdning generated revenue of approximately EUR 3.9 million. They also reported a year-on-year growth of 27 per cent.
Some of the well-known brands that are housed under Dansk Underholdning include Bingosjov and Bingoslottet och Balletbingo.
Peter Eugen Clausen, CEO and co-founder of Dansk Underholdning is expected to stay on as CEO of the company after the acquisition.

The purchase consideration is calculated using an EBITDA multiple of seven for the annualised earnings during the period May 2016 up to and including March 2017. The acquisition is cash financed with an initial purchase consideration of approximately EUR 9 million in March/April 2017 and an additional purchase consideration of maximum EUR 650,000 may be triggered in April 2018 provided that certain conditions have been met.

Mr Green is expected to be launched along Dansk Underholdning’s existing brands with synergies happening with the introduction of the various products and services Mr Green has to offer in Denmark.

Per Norman, CEO of Mr Green & Co. stated: “Since we are focusing on expanding to locally regulated markets, an acquisition in Denmark has been high on our list. Dansk Underholdning is a successful company that we warmly welcome into the Mr Green family”.

Peter Eugen Clausen, CEO and co-founder of Dansk Underholdning commented: “We are excited to become part of Mr Green, which, in my opinion, is one of the most skilled operators in the industry. The deal is a perfect match as it combines Mr Greens competencies and economies of scale with the Danish presence and local knowledge of Dansk Underholdning. We look forward introducing Mr Green in Denmark.”

The acquisition is conditional on the approval of the Danish Gambling Authority and consolidation is expected to take place in April 2017.

Cherry becomes third largest Nordic Gaming Company with the Acquisition of remaining ComeOn Shares

Swedish gaming company Cherry AB has opted to attain the remaining 51% of the shares in ComeOn Malta Ltd. Cherry is anticipated to triple their revenue becoming the third largest Nordic-focused private sector gaming company as a result of this acquisition.

This purchase will see a strong economic growth and expected to deliver a solid background for a continued international expansion with stable brands.

The combined company’s pro forma revenues for the third quarter of 2016 amounts to SEK 475 million with an EBITDA of SEK 109 million. The Cherry Group expects that with the acquisition of ComeOn, it will generate total revenues for the full year 2017 of between SEK 2 600 and SEK 2 700 million with an EBITDA of SEK 550 to SEK 600 million.

Fredrik Burvall, President and CEO, Cherry stated: “We are very pleased to be able to now conclude the acquisition of ComeOn, which means that we considerably strengthen our position in the market. Together we will create an entrepreneurial-driven gaming company where both Cherry and ComeOn have significantly stronger organic growth than the market, and the acquisition improves the Group’s results considerably. This deal also means that Cherry iGaming will increase its revenues from sports betting. Cherry already has a unique income stream diversification from five different business areas along the gaming value chain”

ComeOn holds a strong position in the company’s main markets such as Norway, Finland and Sweden with a successful strategy based on multi-branding. Their games are marketed under many well-established brands like,,,,,, and Around 25% of ComeOn revenue comes from sports betting.

The union of the two companies began earlier in July 2016 and has been progressing according to their plan. So far, the integration work carried out confirms Cherry’s view that compelling synergies exist both in short and long term.
The acquisition of the remaining 51% shares is expected to be concluded in the first quarter of 2017.

Catena Media Announces Casino UK Acquisition

Catena Media, the lead generation and online marketing company have expanded their reach with the acquisition of Casino UK. The purchase price which is payable upon completion amounted to €10.6 million.

The purchase was penned on November 30, 2016 and under the terms of the acquisition, Catena Media will consolidate Casino UK and their related assets in their own operation in order to “utilise the synergies” between the two companies.

Casino UK website is estimated to generate a revenue of around €600,000 per quarter with an operating margin of about 80%. Most of its revenue comes from the UK market. They currently provide reviews about UK-facing online casinos popular casino games guides and other gambling related content.

Catena Media CEO Robert Andersson commented on his company’s acquisition in a press release on Thursday stating how pleased they were with the opportunity to strengthen their UK position.

Catena Media also acquired another UK-based and oriented website SBAT, a sports statistics and betting tips website earlier in October at a cost of €3.2 million (with an option for an additional earn-out of up to €10.5 million).

Catena Media was founded in 2012 and proves to be a fast growing lead generation company having offices in the United Kingdom, Serbia and Malta. Their main focus during the past year has been on growing their market position within the iGaming industry by organic growth and strategic acquisition of key affiliate businesses in its main markets of interest.

Within Catena Media’s four-year history, they made gambling news this spring with their largest transaction to date being the acquisition of the Serbian affiliate portal AskGamblers for the amount of €15 million. Within the past several months as well the company has purchased several affiliate brands in the Italian, UK and German markets.

DraftKings and FanDuel Announces Merger

DraftKings, the Boston-based online Daily Fantasy Sport (DFS) provider and FanDuel, their New York rival, the two largest operators of DFS have agreed to a merger of their business operations.

The merger is expected to be finalised in the second half of 2017 and if approved this deal would create a DFS giant that would control a whopping 80% of the US market. No new corporate name has been agreed upon as yet and the two companies will continue to operate under their respective names until the merger is finalised.

The two companies have been engaged in massive legal battles across the USA in a bid to see DFS legalised in certain states suffering cash flow problems due to these legal fights while still expecting to face roadblocks along the way. Seeing that both companies are fighting the same legal battle in almost every US state, the savings they will experience in legal expenses along makes a huge advocate in justifying the merger.

A statement from CEO Jason Robbins reads: “By combining and streamlining resources, FanDuel and DraftKings can work more efficiently and economically with state government officials to develop a standard regulatory framework for the industry.”

Robins continued: “We have always been passionate about providing the best possible experience for our customers and this merger will help advance our goal of building a transformational global sports entertainment platform.

Joining forces will allow us to truly realise the potential of our vision, and as a combined company we will be able to accelerate the pace of innovation and bring a richer experience to our customers than we ever could have done separately.”

FanDuel’s Nigel Eccles commented: “Being able to combine DraftKings and FanDuel presents a tremendous opportunity for us to further innovate and disrupt the sports industry.

“While both companies have accomplished much already, this transaction will create a business that can offer a greater variety of offerings, appealing to new users, including the tens of millions of season-long fantasy players that haven’t yet tried our products.”