It's been recently announced that stock listed Betsson is buying privately owned Betsafe. Betsafe which was established in 2006, has been focused on the nordic market and most of their turnover has been acquired from their high class casino products and a very well respected sports book. According to di.se, Betsafe increased their revenue with 119 percent between the 1st of May 2010 and the 30th of April 2011 which resulted in an operating profit of approximately €6.9 million.
Both companies are licensed by the Lotteries and Gaming Authority of Malta and both poker rooms are powered by the Ongame Poker network although Betsson also offers the Entraction poker product which was recently bought by ITG in early May 2011.
The purchase price for Betsafe is €32.5 million, half in cash and half in Betsson stocks, but according to SunHerald.com "an additional purchase price, based on the development of the acquisition and the integration thereof during 2011, may become payable by Betsson. Such additional purchase price, if any, will amount to a maximum of EUR 27.5 million, which implies that the total maximum purchase price is EUR 60 million".
Pontus Lindwall, CEO of Betsson states "This deal will fuel our growth. We strengthen our position in the Nordic region as well as our organization when merging two profitable companies, each of which has proven its ability to gain market share in a highly competitive market environment".
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