Wednesday December 24,2014 : BETSSON ENDS DISPUTE OVER N.G.G. EARN-OUT
Euro 15.45 million to be paid.
A dispute over the earn-out due on Betsson's acquisition of the Nordic Gaming Group 2 years ago has been settled at Euro 15.45 million.
In a statement Tuesday Betsson advised that its legal case disputing the earn-out amount has now been settled with the seller of NGG and the agreed amount will be paid, with no additional requirements for transfers of interest.
The original amount in dispute was Euro 20 million.
"This [settlement] agreement means that Betsson will have a cash flow impact of SEK -147.1 million, but also that Betsson will have a positive profit impact amounting to approximately SEK 40 million in the fourth quarter of 2014," Betsson said in a statement.
"According to Betsson's dividend policy, 75 percent of earnings is transferred annually to shareholders through an automatic redemption process. The positive profit effect will not be included in the calculation of net distributions to shareholders.
"Furthermore, there is no reason for revaluation of the goodwill recorded on the acquisition of NGG."