A definitive acquisition agreement to acquire Coolbet, which has been accepted by its board of directors and is scheduled to close in the first quarter of 2021, has been unveiled by Game Account Network for EUR 149.1 million.
The transaction will exploit the patented sports betting technology of the latter, which is expected to be incorporated into GAN’s turnkey technology solutions for launch in the US real money igaming market by the second half of 2021, subject to customary closing conditions, including regulatory approvals.
The merger, which is expected to increase instantly, will welcome more than 175 global employees and more than 84,000 active clients to GAN.
GAN’s CEO, Dermot Smurfit, commented: “From the onset of our IPO we have continued to enhance and perfect our internet gaming software-as-a-service solutions for the US market.
“As a part of that growth strategy, we have been clear that we needed to add a best-in-class sportsbook engine to round out our real money igaming platform, and we believe Coolbet is the perfect fit for both GAN and our customers.”
Centered in Tallinn, Estonia and offering online real-money gaming in sports, casinos, poker and esports, Coolbet has gambling licences in Estonia, Sweden and Malta and has a presence in Northern Europe, Canada and Latin America.
For the first nine months of 2020, the entity secured revenue of EUR 18.6m, which is said to have been approximately equally divided between its sports betting and casino and other divisions.
GAN lauds the timing of the acquisition amid the traction that sports legislation has seen in the US through election results in Maryland, Louisiana, South Dakota, and Tennessee, lauding the group’s performance in a “hypercompetitive” Northern European online market.
“In summary, this union brings two of the best-in class, high-growth offerings in the igaming space together, and makes a powerful combination,” Smurfit added.
We plan to achieve substantial revenue synergies over the long term across both channels and have structured the deal to expand immediately.
“We are excited to welcome the Coolbet team to GAN and look forward to building one of the most complete solutions in our industry. We view this acquisition as part of our unwavering commitment to shareholder value and our long-term growth strategy.”
— GAN (@GameAccountNtwk) November 16, 2020