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AIM-listed Gaming VC Holdings S.A. has announced the acquisition of the business and assets of, an online gambling site formerly owned by Intera NV, for an initial consideration of US$4 million in cash plus a three-year earn out.
Betboo was established in 2005 to provide Bingo, Sportsbook, Casino and Poker access to South American customers. Parent group Intera was incorporated and is regulated under the laws of the Netherlands Antilles.
Betboo has over 3 000 active monthly customers and, for the 12 months to 30 June 2009, generated unaudited revenues of $4.4 million achieving break-even at the profit level. The business has no employees, instead having service contracts with third party companies supplying Customer Relationship Management and IT support. The business has its own software for Bingo and Sportsbook and uses third-party software for the Poker and Casino networks.
The senior management team, comprised of the three people who were also the majority owners of the business, are to remain with betboo following the acquisition.
The total consideration, which is capped at US$30 million and is payable in cash, will be calculated by reference to five times the audited profits after tax for the 12 month period up to the third anniversary of the acquisition less the initial consideration and any interim payments. Interim payments will be paid shortly after the first and second anniversaries of the acquisition equating to one times audited profits for the preceding 12 month period.
Commenting on the acquisition, Kenny Alexander, Chief Executive of Gaming VC, said: "This acquisition complements our strategy of continuing to diversify outside of Germany. The Board believes that South America represents an exciting market opportunity. With a population of approximately 285 million, many of which are passionate about sports, and increasing broadband penetration, we are confident of significantly increasing betboo's presence in this new territory for Gaming VC."

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