Mr Green acquires Danish online gaming company Dansk Underholdning
Mr Green has today acquired all of the shares in the Danish online gaming company Dansk Underholdning and intends to launch Mr Green in Denmark. Dansk Underholdning has a well-established position in the Danish gaming market and primarily offers casino games. Mr Green pays in cash and in light of the acquisition, the Board of Directors intends to propose to the Annual General Meeting that no dividend be paid for the 2016 financial year.
Mr Green is a leading European online gaming company that offers casino and sportsbook games. The acquisition is part of Mr Green’s strategy of expanding to new geographic markets. The purchase is expected to have a positive effect on Mr Green’s earnings per share and operating cash flow in 2017.
Dansk Underholdning holds a Danish casino gaming licence and generated revenue of approximately EUR 3.9 million in 2016. The company reported year-on-year growth of 27 per cent in 2016. Dansk Underholdning has several well-established brands including Bingosjov, Bingoslottet och Balletbingo. The CEO and co-founder of Dansk Underholdning, Peter Eugen Clausen, will remain the CEO of the company after the acquisition.
The purchase consideration is calculated using an EBITDA multiple of seven for the annualised earnings during the period May 2016 up to and including March 2017. The acquisition is cash financed with an initial purchase consideration of approximately EUR 9 million in March/April 2017 and an additional purchase consideration of maximum EUR 650,000 may be triggered in April 2018 provided that certain conditions have been met.
The plan is to launch Mr Green in Denmark in 2017, alongside Dansk Underholdning’s existing brands. Mr Green expects synergies, for example, through the introduction of Mr Green’s various products and services in Denmark.
“Since we are focusing on expanding to locally regulated markets, an acquisition in Denmark has been high on our list,” says Per Norman, CEO of Mr Green & Co. “Dansk Underholdning is a successful company that we warmly welcome into the Mr Green family”.
“We are excited to become part of Mr Green, which, in my opinion is one of the most skilled operators in the industry”, comments Peter Eugen Clausen, CEO and co-founder of Dansk Underholdning. “The deal is a perfect match as it combines Mr Greens competences and economies of scale with the Danish presence and local knowledge of Dansk Underholdning. We look forward introducing Mr Green in Denmark.”
The acquisition is conditional on the approval of the Danish Gambling Authority and consolidation is expected to take place in April 2017. The buyer is the Maltese company Mr Green Ltd.
For further information, please contact:
Per Norman, CEO of Mr Green & Co AB, tel. +46 (0) 722 30 9191
per.norman@mrg.se
Mr Green is a leading online gaming company with operations in 13 countries. The business concept is to offer entertainment and a first-class gaming experience in a responsible environment. The business was founded in 2007 and has developed into a well-established online gaming company with a broad customer offer and a strong globally viable brand. In 2015, Mr Green generated sales of SEK 793 million and the company has over 190 employees. The headquarters and technical development are based in Stockholm, and operations in Malta. Mr Green has gaming licences in Malta, UK and Italy. The company is listed on Nasdaq Stockholm’s main market.
This information was prior to this release inside information and is such information that Mr Green & Co AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 6 February 2017 at 8:00 a.m. CET.
Tags: