Betclic Group is selling Expekt Nordics Ltd and associated properties (“Expekt”) to LeoVegas AB . In Sweden and the Nordic countries, Expekt is one of the most well-known sports betting brands. The overall purchasing price for all properties is EUR 5 million. The transaction brings a well-known sports betting brand to LeoVegas’ stable, as well as expanding the company’s strategic growth prospects in the market.
Gustaf Hagman, Group CEO LeoVegas said: “For those of us who grew up with online gambling in Sweden, Expekt is undeniably one of the pioneers in sports betting. I can remember back in the early 2000s when everyone played on Expekt. After a few years on the side-lines, we will now restore Expekt to its former glory as the leading sports betting brand.
“We are working resolutely to offer the ultimate mobile sports betting experience, which will entail a number of new innovations and new thinking with a starting point from what a mobile experience can entail for the big years of sport in 2021 and 2022. This is a milestone for LeoVegas and represents a broadening of our strategy. We look forward to Expekt once again becoming a leading sport brand in Sweden and the Nordic countries.”
LeoVegas is purchasing all of the shares in Expekt Nordics Ltd, a Maltese group. Expekt owns a Swedish gaming licence and trades under the Expekt name for Swedish clients. Expekt properties, including all rights to the Expekt name and access to the current consumer database, will be purchased by LeoVegas from Mangas Gaming Ltd.
The purchased company’s NGR (Net Gaming Revenue) in 2020 was EUR 6.9 million, and the company is profitable. Expekt produced EUR 1.6 million in NGR in the fourth quarter of 2020, with 91 percent of that coming from the Swedish industry. For 2020, the selling price reflects a sales multiple of 0.7x (based on NGR).
The contract involves a three-person commercial squad that, along with LeoVegas’ core duties, will steer the brand forward. LeoVegas is not buying any technology, and technological conversion to the company’s own infrastructure is underway. In May 2021, the technical migration and acquisition as a whole will be completed. The payment would be made in cash and funded from available money.