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Betsson AB has recently purchased B2C company InkaBet. This online gambling business will strengthen Betsson’s Latin America presence. Additionally, this strategic deal should be completed within 30 days of closing.
Betsson Acquires Latin American Brand InkaBet
A Betsson AB subsidiary, SW Nordic Limited, has recently acquired InkaBet. InkaBet is a B2C online gambling business that focuses on sportsbooks for western South America. This deal allows Betsson to strengthen its Latin American presence. However, a strong foothold in Latin America is an extremely important part of their global development strategy.
As the Latin American online gambling industry opens up and becomes more regulated, it’s critical for brands to solidify their presence quickly. This acquisition is one of a host of deals and agreements being made between big industry names and local suppliers.
Betsson AB is in a unique position to make lucrative deals with promising Latin American companies like InkaBet. Their revolving credit facility allows them to create attractive deals that other brands may not have access to. SW Nordic Limited has agreed to an initial consideration of 25 million USD. This grants all business activities, operations and related assets used to operate the InkaBet brand. Additionally, Betsson has agreed to pay up to 4 million USD if InkaBet hits the agreed upon revenue targets.
InkaBet has six months after closing to reach the revenue and EBIT targets. However, here is also a deferred payment of 5 million USD payable over the next two fiscal years. In total, the purchase price is 3.8 times the EBIT of the past 12 months, ending June 2021.
Betsson Benefits From Bringing InkaBet Under Its Umbrella
Betsson Group’s ability to finance such lucrative deals gives them an advantage. This is because many well-known online gambling brands are racing to gain a market share in Latin America. However, not all of them have the flexibility and power of Betsson.
Currently, InkaBet is a leading B2C brand in western South America. They offer premium sportsbook and casino products to the region and pull in substantial revenues. As of June 2021, their revenue was 25.2 million USD. Additionally, their operating income, or EBIT, was only 8.8 million USD. When compared with the previous year, their growth was up 146 percent.
These numbers, combined with InkaBet’s brand recognition in the region, give Betsson an advantage in Latin American expansion. Additionally, the transaction is expected to be completed within 30 days of signing. However, there will also be a period of restructuring, per the agreement.
Pontus Lindwall, CEO of Betsson AB, gave this statement on the deal: “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.”
About Betsson AB
Betsson AB is a publicly traded holding company that invests in online gaming brands. Additionally, they have curated an extensive portfolio of fast-growing, innovative online gaming companies. Their mission is to sustainably “outgrow the market” through organic development and acquisitions.
Betsson has been in the online gaming business for more than 50 years. They are a behemoth in the industry to say the least. They boast over 1,000 video slot titles and a huge variety of live casino, sportsbook and table games. Additionally, they are known for launching frequent bonuses and promotions. Betsson players are given tons of ways to strike a payday.
Betsson is constantly looking for ways to provide fresh, innovative content to players around the world. They also hold 19 licenses across major jurisdictions and consistently deliver top-quality entertainment in all markets.
Their games are eCOGRA certified and independently verified by third-party testing for fairness and security. Additionally, players can enjoy mobile and desktop gaming no matter what they choose to wager on with a super flexible platform.
About InkaBet
InkaBet is a Peruvian online casino brand that was established in 2021. Their main focus is an extensive sports betting market. However, they also offer a huge portfolio of slot titles and table games. Additionally, they’re looking to expand into other areas in the future.
InkaBet users can participate in live betting on sports like:
- Soccer
- Basketball
- Virtual horse races
- e-Sports
- Tennis
- Volleyball
Players who prefer table games have access to many types of roulette, blackjack, Baccarat and poker. Additionally, you’ll find also live casino offerings as well,
Fans of slot games are able to choose from all of the latest hits from top providers. This includes Megaways titles and games like Starburst XXXtreme, Legacy of Oz HyperSpins and the newly released Ancients of Korea.