The Swedish online gaming group Betsson AB announces their plan to continue their expansion into the UK market in 2017 with the acquisition of the interactive gaming operator NetPlay TV.
Betsson governance reveals that they have made a cash offer to obtain the London AIM-listed company for a grand amount of £26.4 million.
This transaction is expected to be finalised by April and still has to be approved by the UK High Court of Justice and NetPlay TV shareholders. In order for the acquisition to go through, 75% acceptance is needed. Several investors in the gambling company have already given the thumbs up for the deal with the purchase being seen as a way of increasing their presence in the highly saturated UK online gambling market.
NetPlay TV generated a revenue of £14.7 million last year for the six months ended June 30. They currently run three casinos, sports betting and bingo brands as well as a B2B business that focuses on providing online digital marketing services and related operations.
CEO of Betsson Group Ulrik Bengtsson who was a speaker at one of the SiGMA 2016 conferences entitled “Catapulting Malta into the future”, made a short statement on his firm acquiring three established UK betting brands (Jackpot24/7, SuperCasino and Vernons) as well as the NetPlay asset which would see future growth and efficiency in scalability once integrated with its Techsson platform.
“Betsson’s experience of operating successful casino brands will add to NetPlay’s earnings and growth. We have a long-term view on NetPlay and will achieve significant cost synergies and operational improvements over time. Part of Betsson’s acquisition strategy is to add volume to its scalable Techsson platform and to increase the share of regulated revenue,” he commented.
CEO of NetPlay Bjarke Larsen endorsed Betsson’s approach stating: “With the changing market dynamics and as the market continues to consolidate, we believe now is the right time to take advantage of this opportunity to realise value for all of our shareholders.”