SBM sells Betclic Everest stake to FL Entertainment

FL Entertainment will list in Amsterdam through a SPAC deal.
FL Entertainment will list in Amsterdam through a SPAC deal.

The transaction paves the way for Betclic Everest to go public in a SPAC merger.

France.- Monte-Carlo SBM International (SBM) has transferred its 47.3 per cent stake in the online gambling operator Betclic Everest to the new media and betting conglomerate FL Entertainment. It was announced in May that Betclic Everest would merge with TV producer Banijay to form FL Entertainment with the intention of going public.

FL Entertainment will merge with the Euronext Amsterdam-listed special-purpose acquisition company (SPAC) Pegasus Entrepreneurial Acquisition Company Europe. The combined business will specialise in pan-European sports betting via Betclic and television via Banijay.

The new business would have combined revenue of €3.5bn and an EBITDA of €61m. The company forecasts revenue of €3.8bn and EBITDA of €645m by the close of 2022. Betclic is expected to be the key growth driver. FL Entertainment said it expects its European online betting and gaming offerings to be lucrative.

SBM will hold 4.95 per cent of the voting rights in FL Entertainment and 10.39 per cent of its economic rights of the business. Banijay chairman Stéphane Courbit will chair the new company and former Financière Lov chief executive François Riahi will serve as CEO. Betclic Group will be led by Nicolas Béraud.

Pegasus has raised €100m through non-redemption commitments, €50m from Financière Agache and Tikehau Capital, €250m from controlling shareholder Financière Lov and €220m in private investment in public equity (PIPE) funding. It plans to raise another €250m in PIPE funding.

It hopes to see Betclic’s customer base grow by 18 per cent this year, from 893,000 monthly average players to over 1 million. It plans to use the funding raised to innovate in the offers available for players, improve the user experiene and invest in customer relations management to improve player retention and loyalty.

In December, Betlic Everest’s Bet-at-home announced it was laying off 65 employees under a restructuring plan after deciding to withdraw its online casino offering from Austria due to legal issues. The company said the plan aimed to “adjust the group’s structure to lower revenues”.

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Betclic Everest FL Entertainment