Gamenet Group complete acquisition of Goldbet

Business News

Gamenet Group has announced that the wholly owned subsidiary Gamenet S.p.A. completed the acquisition of 100% of the share capital of GoldBet S.r.l, as previously announced to the market on July 24, 2018.

GoldBet, an authorized gaming and betting company in Italy, operates a physical network of 990 betting shops rights and holds the concession to collect online games and bets, including via mobile platforms.

GoldBet closed the financial year ended 2017 with an EBITDA of Euro 41.0 million, an EBIT of Euro 35.0 million, a net income of Euro 23.0 million and generated an EBITDA of Euro 54.0 million for the twelve-month period ended June 30, 2018.

The purchase price of the Acquisition is equal to approximately Euro 273 million, net of certain costs incurred by the seller, has been paid in cash today, and Euro 25.0 million will be paid at a subsequent date, as it constitutes a deferred price component over a medium term period, subject to the fulfilment of certain conditions provided for in the acquisition agreement.

The Acquisition will allow Gamenet Group to assume a leading position in Italy in the multi-concession gaming sector, in particular in the sports betting sector, and to significantly increase the degree of diversification of its product portfolio and profitability, at EBITDA, EBIT and net profit levels.

With the integration of GoldBet, the Company estimates that it will be able to achieve significant cost synergies, with a resulting improvement effect on EBITDA.

The Closing was subject to the occurrence of the usual conditions precedent for this type of transactions, including the prior approval of the Italian Competition Authority, which was received on September 17, 2018 and the authorization of the Customs and Monopolies Agency, which was received on August 2, 2018.