02/29/2012 : Immediate access to Australian online market
European internet gambling group Unibet plc has finalised its outright acquisition of Australian online sports and racing betting agency Betchoice following approval by the Australian Northern Territory Racing Commission yesterday (Tuesday).
Unibet sealed the deal with an upfront cash payment of AUD 20 million (GBP 13.6 million) on a debt free-cash free basis. In addition there is an earn-out for Mark Morrissey the founder, Chairman and 38 per cent shareholder based on 5.5 x 2014 EBITDA in Australia less the initial acquisition price. A further AUD 2.4 million in aggregate will be payable to certain other shareholders, if 2014 EBITDA in Australia exceeds AUD 4.4 million.
Mark Morrissey will remain with the business post-completion.
“We are grateful for the licensing authority’s swift processing which means that we get immediate access to the regulated Australian on-line market. The acquisition provides us with a basis to grow market share in Australia and means that Unibet’s gross winnings revenue proportion from re-regulated markets will increase,” said Henrik Tjärnström, chief executive officer of Unibet.