Betsson announced that its previously announced acquisition of Rhino Entertainment Group’s business-to-customer (B2C) business and B2B tech stack has been completed. According to the former company, the transaction aligns with its dual strategy of expanding on both the B2B and B2C fronts.
The Acquisition Has Been Completed
On August 3, Betsson announced that the acquisition of Rhino Entertainment Group’s B2C business and certain B2B assets has been completed. This comes several months after the transaction’s announcement in March.
Betsson clarified that under the terms of the agreement, it has now acquired several Rhino Group entities that collectively hold assets, licenses, personnel and operational capabilities related to Rhino’s B2C activities in Ontario and the rest of Canada.
Additionally, Betsson has also acquired Rhino Group’s proprietary front-end and middleware technology, which is expected to strengthen Betsson’s overall B2B offering, leading to an increase in licensing revenue.
For reference, Rhino’s assets generated an estimated combined EBITDA of about $15.9 million last year.
The Deal Aligns with Betsson’s Strategy
In March, Betsson also revealed the financial terms of this transaction. According to that announcement, it will pay roughly $74.3 million for the assets in question. This notably includes an initial payment of approximately $59.5 million made at closing, with the remaining balance due six months after completion. Betsson stated that the deal will be financed with its existing cash resources.
Back when the deal was announced, Betsson said that it aligns with its dual strategy of expanding its B2C presence in regulated markets while also growing its B2B technology licensing operations.
Additionally, Canada, which is a fairly fresh market when it comes to online gaming, is an attractive jurisdiction for Betsson. Since Ontario, and now Alberta, have attracted many international operators, Betsson is also looking forward to capitalizing on opportunities in the country.
In other news, CEO Lindwall just discussed the future of Betsson.