RaceBets Acquired by Betsson

Niche operator RaceBets complements Betsson's offering with a proprietary horse racing product and an experienced horse betting trading team.
Online gambling group Betsson has announced the acquisition of niche operator RaceBets, noting that it complements Betsson's offering with a proprietary horse racing product and an experienced horse betting trading team.
The horse betting product will be added to Betsson's offering and will benefit all Betsson brands, a company statement advises, noting that RaceBets holds licenses in the UK, Ireland, Malta and Germany.
The Betsson statement claims:
"RaceBets offers a highly competitive product on par with the best UK operators and customers can bet on more than 250,000 different races yearly. 75 percent of RaceBets' revenue come from locally regulated markets, primarily Germany and the UK, making it a good strategic fit for Betsson.
"Horse racing is one of the most popular betting sports and the total estimated worth of the European horse betting market is Euro 3.5 billion.
Ulrik Bengtsson, CEO and president of Betsson AB commented:
"Horse racing is important in many of our markets and the key rationale of the acquisition of RaceBets is to enable our subsidiaries to accelerate the launch of a world class horse racing product on all core brands. This will help fuel organic growth in strategic markets such as the UK and Germany."
Betsson acquires RaceBets from the company's founders and the German Thoroughbred Racing Association, and says that the cooperation with German racing will continue.
Accounting revenue of RaceBets in 2015 was Euro 9.3 million and adjusted EBIT was Euro 3.36 million. The annual growth rate 2013-2015 was 12 percent.
The initial acquisition consideration agreed by Betsson for the business is Euro 34 million, payable in cash.
Subject to achieving certain financial and non-financial milestones, a remaining purchase consideration amounting to Euro 6 million may be paid, with the total maximum consideration for the business capped at Euro 40 million. The deal is expected to close early next year.
Betsson's statement Wednesday warned that restructuring costs regarding RaceBets will have a temporary negative impact on revenue and EBIT of up to Euro 750,000 in 2017. The integration of the horse racing product into Betsson's technology platform will be finished no later than in the third quarter 2017.
RaceBets was founded in 2005. By 2007, it was established as the leading horse racing bookmaker in Germany, and three years later the German Thoroughbred Racing Association became shareholders and a significant percentage of profits have since been reinvested in the horse racing industry. Since 2012 RaceBets offers full-coverage of UK and Irish horse racing markets. The company is based in Malta and has 60 employees.