Betsson AB has continued its recent expansion in South American markets by announcing that it has reached an agreement to acquire the online business of sportsbook and casino operator Inkabet.
The deal has been formalised by Betsson subsidiary SW Nordic Limited, which has agreed to an initial consideration paying $25 million to acquire the Peru-licensed operator’s online assets.
Further deal terms see Betsson agree to a $4 million performance incentive, based on Inkabet outperforming its EBIT targets during its first six months under new ownership.
Updating investors, Betsson disclosed that the purchase price of Inkabet assets was established at a price equivalent to 3.8x EBIT performance of the past 12-months ending June 2021.
The deal will be financed using the capital made available by Betsson’s expanded revolving credit facility of SEK 500 million (€48m) – a funding scheme activated this summer.
The Inkabet deal sees Betsson undertake its fourth M&A for South American markets, where it has bolstered its portfolio by acquiring Suaposta Brazil and Colbet Colombia, alongside LatAm payments provider JDP Tech.
Providing further insights, Betsson stated that it will leverage Inkabet’s market leading foothold in Peru to advance growth opportunities across the Western regions of South America.
Operating since 2012, Inkabet is reported to have generated revenues of $25 million and operating income of $8.8 million over the past 12-months – recording 146% growth on its preceding year results.
Pontus Lindwall, CEO of Betsson AB, said: “Through this transaction, Betsson continues to build market share in the LatAm region, following the previous acquisitions of JDP Tech Ltd, Suaposta and Colbet.
“This strengthens our position in a strategically important region where we have performed well and have big ambitions for the future.”