Entain has upped its European ante with the €850 million ($887 million) acquisition of iGaming and Dutch sports betting company BetCity. [Image: Shutterstock.com]
Complete acquisition of capital
Sports betting and gaming giant Entain has announced the acquisition of its entire capital from BetEnt and its flagship BetCity brand from Dutch Sports Entertainment Media.
Initial amount of 300 million euros ($313 million)
The cash-plus-earnings deal, announced Tuesday, will see Entain make an initial payment of 300 million euros ($313 million) and a deferred contingency of 550 million euros ($573 million) to online bookmaker and iGaming. The total deal value is 850 million euros ($887 million), and the deal is expected to close during the second half of 2022.
According to a company press release, Entain expects the acquisition of BetCity to generate approximately €28 million ($29.2 million) in cost synergies by the end of 2026, most of which is derived from technology, content and ownership benefits.
Attractive growth indicators
The FTSE 100 operator described BetCity’s offering as “too complementary” to its iGaming and sports betting brand bwin and Party, which Entain confirmed is still awaiting approval to operate in the Netherlands.
Entain CEO Jette Nygaard-Andersen said the deal is part of the company’s “growth strategy to operate in attractive regulated markets.” She added that her company was “delighted” with the addition of BetCity and “excited about the great opportunities in the newly regulated Dutch market”.
According to Entain, BetCity has thrived since receiving its Dutch license, experiencing rapid growth. So much so that it became a market leader, with a market share of about 20% during the fourth quarter of 2021.
Get a buying spree in 2022
Entain, formerly known as GVC Holdings, is doubling down on expansion plans this year. In April, focusing on the lucrative Ontario sports betting market and the iGaming market, Entain acquired the holding company of Canadian betting operator Sports Interaction in a C$300 million ($236 million) deal.
Nygaard-Andersen confirmed that the acquisition of Sports Interaction would complement Entain’s existing Canadian presence and allow it to benefit from the newly acquired company’s local expertise.