After entering into an agreement with Livelounge, a company registered in the British Virgin Islands, Spiffbet has added to its roster of online casino brands to buy the Sir Jackpot and Live Lounge online casinos for a maximum of SEK 2.5m (£ 220,000)
The sale means that the sirjackpot.com and livelounge.com domain rights are purchased by the group with the related consumer databases and other intellectual property rights. The acquisition involves two staff who will be incorporated into the organization of Spiffbet.
The purchase will be finalised in two payment tranches, the first of which will consist of a promissory note of SEK 2 million to be repaid in cash or off-set against newly issued shares of Spiffbet after approximately two months.
The second tranche is via a SEK 500,000 cash payment which will be paid out if certain conditions are met by 20 June 2020.
Spiffbet’s CEO, Henrik Svensson, commented: “We continue to deliver on our growth and acquisition strategy. Sir Jackpot and Live Lounge contribute to our existing business with both sales and earnings, which allows us to allocate fixed costs on a larger revenue base and increase our bargaining power vis-à-vis suppliers and partners.
“In addition, we are adding two qualified employees, which is important in the growth phase we are in now.”
Spiffbet’s seventh acquisition in as many months constitutes the acquisition of Sir Jackpot and Live Lounge, with the company now running ten European igaming brands in parallel with its production divisions under STHLM Gaming and Spiffbet Casino.
The business has previously reported that it plans to be an engine to consolidate the European online casino industry through a two-part strategy.
Extension into emerging markets
First, in order to achieve synergies and economies of scale, Spiffbet intends to develop through acquisitions before extending the acquired brands and expanding operations into emerging markets.
Maria Boelius, head of Spiffbet’s casino, added: “This is a good add-on acquisition that gives us two more established brands to work with. Thanks to the fact that the business is on the same platform as us and with the same support system in general, there will be minimal measures to integrate the business.
“We also welcome the two employees as employees of Spiffbet. It suits us perfectly to strengthen the organization now that we are accelerating the business of acquisitions made in 2020.”