Net Gaming completes acquisition of affiliate assets within the Nordics
Net Gaming has entered into an agreement to acquire several affiliate assets driving traffic throughout paid media channels - primarily within Sweden, but also in the UK.
On November 10, 2017, Net Gaming announced the signing of a Letter of Intent to this effect. Net Gaming has now signed an agreement to acquire these affiliate assets. The acquired assets are growing fast. Currently, they are expected to generate quarterly revenues of approximately EUR 400,000, with an operating margin in the region of 50 percent.
- I'm very happy that we are strengthening our position primarily within Sweden, but also in the UK. While Sweden is expected to regulate going forward, the UK is already a regulated market. Our aim is to increase our share of the revenues from regulated markets, both organically and from acquisitions. Aside from this, we will now take the step into the paid media area, since this acquisition drives traffic throughout many digital distribution channels. This will give us further opportunities, enabling us to grow our existing business, comments Marcus Teilman, CEO Net Gaming.
The initial purchase price amounts to EUR 3,000,000, of which EUR 2,000,000 will be paid with existing cash, while EUR 1,000,000 will be paid in Net Gaming shares. The share price will be set to the volume-weighted average share price, five days prior and after the date of this press release. In addition to this, an earn-out of up to EUR 3,750,000 may be paid, of which Net Gaming can choose to pay up to 1/3 in shares. In the event of the maximum earn-out being paid, the total consideration will correspond to an earnings before tax multiple of 4.5.
For further information, please contact:
Marcus Teilman, President and CEO
+356 9936 7352
Net Gaming Europe AB (publ)
Telephone: +46 8-410 380 44
The information in this press release is information that Net Gaming Europe AB (publ) is required to disclose in accordance with the EU Market Abuse Regulation and, where applicable, the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information was provided by the contact person above for publication on 23 November 2017 at 08.25 CET.