Rank expands in Spain with YoBingo acquisition

Business News

Rank Group PLC said Tuesday it has acquired Spanish online bingo operator YoBingo.es for EUR52 million in cash, as part of the company’s geographic expansion plans.

“The acquisition of the YoBingo Group expands Rank’s digital footprint in Spain. Spain is an exciting high-growth regulated market which we believe offers strong multi-channel potential. The YoBingo Group is a well-established operation that we intend to further develop and to cross-sell into our established Spanish retail operations,” Rank Chief Executive John O’Reilly said.

Under the deal, the gambling company has bought QSB Gaming Ltd, the parent of YoBingo.es, for an initial consideration of EUR21 million. The acquisition consideration also includes further consideration of up to EUR31 million, depending upon the future performance of YoBingo.es.

Rank Group expects the deal to be earnings per share accretive and will fund the consideration from its own cash resources.

For 2017, QSB and its units generated revenue and earnings before interest and taxes of EUR10.4 million and EUR2.5 million, respectively.