Online games provider Unibet PLC, has confirmed that it has paid an initial €7.5 million to the former owners of iGame Group Ltd in accordance with its agreed August 2015 corporate acquisition terms.
The €7.5 million earn-out relates to ‘first-stage’ performance benchmarks attached to Unibet’s €59 million buyout of iGame assets which the company acquired in September 2015.
In a statement to investors, Unibet disclosed that iGame Group had managed to meet its initial performance targets set for the financial year ending 31 December 2015.
The remaining earn-out payment up to a maximum of €12.5 million will be assessed by 30 September 2016, based on the results of the iGame Group up to 30 June 2016. During the first quarter of 2016, iGame Group has continued to perform strongly.
The cost of paying the maximum earn-out of €20 million was fully provided in the financial statements of Unibet Group on 31 December 2015, so this payment has no impact on Unibet’s earnings for 2016.