Leading B2B supplier of internet gaming software-as-a-service (SAAS) solutions Game Account Network (GAN) announced yesterday the completion of its €149.1 million cash and stock acquisition of Coolbet.

“The completion of the Coolbet acquisition brings together two best-in-class offerings in the iGaming space today, and makes a powerful combination by creating a fully-integrated offering, customizable for each client’s needs.”

Dermot Smurfit, CEO, GAN

Integrated Offering in the US by Q3

The acquisition which was initially announced in November 2020 when GAN signed a definitive agreement to acquire Vincent Group p.l.c. integrates the industry-leading proprietary sports betting technology of Coolbet into GAN’s B2B technology platform, to position the combined entity as a full-service provider of business-to-business solutions for real-money gaming in the US, and ensure a strong presence into selected international B2C markets.

As the transaction is expected to be immediately accretive, the integration of Coolbet’s betting technology began in earnest pending closing the transaction, and the integrated sports betting offering of the combined entity is expected to be available to the markets in the US by the end of the third business quarter of 2021.

Tallinn-based Coolbet which holds gambling licenses in Estonia, Sweden and Malta and offers sports betting, online casino and poker, as well as esports, currently has a team of 175 employees, which GAN already began integrating according to CEO Smurfit, ensuring a seamless integration.

“Over the last few weeks, the GAN and Coolbet teams have spent significant time together outlining our exciting future and have grown even more confident in the numerous revenue synergies that we see across both platforms.”

Dermot Smurfit, CEO, GAN

Coolbet’s B2C Will Continue Unaffected

Coolbet’s B2C igaming operations featuring online casino and sports betting in Northern Europe, Canada and Latin America, including trading services advice and technical integrations for US-based clients, would continue, run by Coolbet founder Jan Svendsen.

“We look forward to leveraging one of the most complete solutions in our industry both domestically and internationally, and believe our growth platform is well positioned to drive long-term shareholder value.”

Dermot Smurfit, CEO, GAN

The acquired entity posted €18.6 million in revenue for the first 9 months of 2020, split approximately 50% in sports betting and 50% in casino and other verticals, which resulted into earnings before interest, tax, depreciation and amortization (EBITDA) of €500,000 and break-even net operating income.

Having previously raised €35 million in equity through private placements, Coolbet had no debt by the time the acquisition was agreed last year.