Final Earn-out Payment Made for Jackpotjoy and Starspins Brands

Business News

Jackpotjoy plc, the largest online bingo-led operator in the world, announced today that the Jackpotjoy group has made the final earn-out payment for the non-Spanish assets within the Jackpotjoy division.

This final payment amounted to £94.2m and has been comfortably met by existing cash resources.

The Jackpotjoy division, which includes the Jackpotjoy, Starspins and Botemania brands, was acquired from Gamesys Limited in April 2015 for an initial purchase price of approximately £425.8 million and earn-out payments dependent on the future operating success of the business.

The payment of £94.2m which has been made today is the final instalment in relation to the Jackpotjoy and Starspins brands and also includes £30.3m due on the earn-out for the Spanish brand, Botemania. A final payment for Botemania – which is also expected to be met from cash resources – will be made in June 2018 and had a balance sheet value of £31.1m at 31 March 2017.

Jackpotjoy plc CEO, Andrew McIver, said: “Today’s final payment of the earn-out on the non-Spanish brands of the Jackpotjoy division is another important milestone for the Jackpotjoy group, following our move to the London Stock Exchange earlier this year.

The Jackpotjoy division is the largest of our three operating companies and the total consideration paid for the non-Spanish assets represents an EBIT multiple of 7.5x for the 12 months to 31 March 2017. We believe this represents excellent shareholder value for the UK’s market leader in the online bingo-led vertical. Meanwhile, the 14% growth in revenue which the Jackpotjoy division delivered during Q1 highlights the sustained momentum in growth.”