Betsson Strengthens Its LatAm Presence with Inkabet Takeover in Peru
Betsson AB has continued its recent expansion in South American markets, reaching an agreement with sportsbook casino operator Inkabet.
Betsson Acquires Inkabet for $25 Million
Betsson AB continues its expansion in South America, announcing its agreement with sportsbook casino operator Inkabet. SW Nordic Limited, a Betsson subsidiary, formalized the deal by paying $25 million for the acquisition of the Peru-licensed operator’s online assets.
With this deal, Betsson will undertake its fourth M&A in LatAm, as it previously acquired Colbet Colombia, Suaposta Brazil and payment provider JDP Tech.
Betsson CEO Pontus Lindwall stated that with this deal, the company expects to continue to build its presence in LatAm, following its previous acquisitions. This strategic new deal strengthens its position and will help it achieve its goals in the future.
Inkabet’s Assets Equivalent to 3.8x EBIT Performance
Betsson agreed to a $4 million performance incentive on Inkabet’s outperformance of its EBIT (earnings before interest and taxes) targets during the first six months of the new ownership. The company showed its investors that this acquiring Inkabet’s assets is the equivalent to 3.8x EBIT performance of the past 12-months ending June 2021.
Founded in 2012, Inkabet is one of the leading B2C brands offering casino and sportsbook products in the western region of Latin America. In June, the company reported that over the past 12 months, it generated a revenue of $25 million and an operating income of $8.8 million, accumulating 146% growth compared to the year before.
Furthermore, Betsson stated that it would leverage Inkabet’s leading foothold in Peru to grow further in South America’s western regions.
Betsson recently activated a funding scheme to finance the deal, using capital from an expanded revolving credit facility of $57.6 million.
Betsson Keeps Its Momentum
Betsson AB is a Swedish company that offers online gambling products like poker, bingo casino, sportsbook products and scratchcards through more than 20 online brands.
In July, Betsson published its interim report for April-June 2021, showing an all-time high profit. The company’s revenue for the 3-month period, which ended on June 30, showed a year-over-year increase of 14% or $210 million and an organic increase of 24%.
Betsson’s revenue increase is primarily due to its sportsbook operations, which increased by 125%, with an operating margin of 8.5% increase from 6.9% in the respective quarter of 2020.
In July, Betsson also announced its expansion to Belarus through Eurobet, becoming the first operator to offer online poker in the country. With Eurobet, Belarus residents would be able to bet on sports and play different online casino games. Acquired by Betsson in 2015, Eurobet plans to expand its library by adding new game providers in the nearest future.
Eva is a PR specialist and communications expert with ten years of experience in campaign organizing and creative writing. She is also a published author of fictional stories. Eva recently developed an interest in economics and the gaming industry after discovering the inspirational story of Molly Bloom.
