SW Nordic, a Betsson subsidiary, has agreed to purchase Inkabet’s B2C online gambling company. Inkabet is a sportsbook and casino operator focused on the western part of South America.
Betsson intends to use the acquisition to improve and extend its presence in Latin America, which it describes as “a strategically important region for the company.”
The initial price tag for the deal, which will see SW Nordic absorb the Inkabet brand’s business activities, operations, and all connected assets, is $25 million.
Additionally, Betsson will pay up to $4 million based on Inkabet’s performance in meeting the agreed-upon revenue and EBIT targets in the six months following the closing, as well as a $5 million deferred payment (of which $3 million is due on December 21, 2022, and $2 million is due on December 31, 2023, if no claims arise).
The total purchase price is 3.8 times EBIT for the previous 12 months ending in June 2021. Betsson’s revolving credit facility will be used to fund the acquisition.
Building LatAm market share
Betsson’s CEO, Pontus Lindwall,of the company’s recent acquisition said: “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.”
Inkabet, which is hailed as “one of the leading B2C brands offering sportsbook and casino products,” focuses on the western part of the continent.
As of June 2021, revenue for the brand, which was initially established in 2012, was $25.2 million, with operating income of $8.8 million. When compared to the previous 12-month period, revenue increased by more than 146 percent.