Entain completes BetCity acquisition in the Netherlands
Entain has completed the €450m acquisition of the Dutch operator.
Netherlands.- Entain announced yesterday the completion of the acquisition of BetEnt B.V., which trades under the BetCity.nl name, from Sports Entertainment Media.
BetCity is one of the Netherlands’ leading licensed operators in the newly regulated online sports betting and gaming market. Since its licencing in October 2021, BetCity continues to deliver strong growth, maintaining its established leading share of approximately 20 per cent of the fast-growing market.
Jette Nygaard-Andersen, CEO of Entain, commented on the acquisition: “We are pleased to have completed the acquisition of BetCity. The combination of BetCity’s local expertise and strong brand, alongside Entain’s global scale and market-leading platform provides customers with an enriched and broader offering of engaging products, fresh content and new experiences.
“This transaction further underpins our growth strategy of operating in, and expanding further into, attractive regulated markets. We look forward to working with Melvin and the BetCity team as we execute the significant opportunities in the Dutch market.”
As announced on 14 June 2022, the acquisition structure is an initial consideration of €300m paid on completion then a balancing payment will be paid once BetCity’s financial performance for 2022 is confirmed.
A further contingent payment will be paid in early 2024, based on 10x BetCity’s EBITDA for the financial year 2023, with fewer amounts already paid out.
In addition, a final contingent payment of €50m will be paid on delivery of synergies and successful migration to the Entain Platform.
The total consideration payable, on current expectations, is €450m. However, dependent on the performance of BetCity, the maximum consideration is capped at €850m.
The combination is expected to deliver approximately €28m (approximately £25m) of cost synergies, predominantly from technology, content and royalty benefits, by the end of 2026.
The initial consideration has been funded from the proceeds of the group’s re-financing announced on October 19, 2022, and existing cash resources.
Further expansion for Entain
Meanwhile, Entain has gained five new gaming licences in Germany. Granted by the Saxony-Anhalt State Administrative Office, the five-year licences will allow Entain’s bwin, Ladbrokes and SportingBet brands to offer online gaming. Ladbrokes and bwin have also gained licences to offer online poker, making Entain the first operator to receive an online poker licence in Germany.
Meanwhile, Entain has launched its first sports betting venture in an African market going live with its flagship bwin brand in Zambia.
Last month, Entain also announced it had completed its acquisition of SuperSport, the leading bookmaker in Croatia.
