Spittbet has acquired online casino Goliath, the acquisition will generate significant synergies between Goliath, Metal Casino and Spiffbet’s gaming production.

Goliath operates the online casino Goliath Casino with a focus on emerging markets. The business, which started in February 2018, has mainly targeted larger players and has so far had 25,000 depositing customers. 

A total of SEK 37 million was made in player deposits in 2019. Goliath’s gaming surplus (Net Gaming Revenue) amounted to SEK 15 million in 2019, with a negative result. In 2020, Goliath will show significantly lower sales compared to 2019.

However, the result has improved and during the first half of the year Goliath showed a zero result. Following coordination with Spiffbet’s current online casino, Metal Casino, Goliath is expected to make a positive profit contribution in the Spiffbet Group during the second half of 2020.

Spiffbet offers the shareholders in Goliath to exchange their shares in Goliath for newly issued shares in Spiffbet, whereby Goliath becomes a wholly owned subsidiary of Spiffbet. Upon full connection with the offer, a maximum of 6,632,331 Spiffbet shares will be issued, corresponding to a value of approximately SEK 2,656,793 based on a share price of SEK 0.401 per share in Spiffbet. 

The total number of shares in Spiffbet increases upon full connection to 172,836,216, which corresponds to a dilution of 3.8 percent, calculated as the number of newly issued shares divided by the total number of shares issued at the time of acquisition. The share capital will increase by SEK 829,041.

The offer is recommended by Goliath’s Board of Directors and has been accepted by 84.3 percent of Goliath’s shareholders by signing a non-cash agreement. The ambition is to receive support from other shareholders in Goliath in August through acceptance of the offer. 

The offer is conditional on Spiffbet receiving acceptance from shareholders representing at least 90 percent of all shares and votes in Goliath. Goliath has 42 shareholders and is not listed on the stock exchange.

In connection with the acquisition, Spiffbet will carry out a private placement to a group of selected investors, some of whom are shareholders in Goliath. The purpose of the issue is to partially finance the acquisition. 

The issue adds SEK 856,073 to Spiffbet, which corresponds to SEK 0.401 per newly issued share, implying a discount of 10 percent based on the volume-weighted price in Spiffbet for a period of 10 days before the offer. The issue means that the number of shares increases by 2,137,073 and that the company’s share capital increases by SEK 267,134. The total number of shares in Spiffbet increases upon full connection in both of these issues to 174,973,289, which corresponds to a dilution of 5.0 percent, calculated as the number of newly issued shares divided by the total number of shares issued at the time of acquisition. Total comingthe share capital to increase by SEK 1,096,175.

“The acquisition of Goliath strengthens our position in the online casino and is an important part of our acquisition plan. Through Goliath, Spiffbet gets access to a new brand that is internationally viable and that we can develop and expand into new markets. Furthermore, the coordination benefits with Metal Casino are clear. Goliath fits in well with our business and complements our market presence with a different profile and partly other markets .”says Henrik Svensson, CEO of Spiffbet.

“Through the acquisition, Goliath gets a fresh start and can, through Spiffbet, continue to develop and be part of a larger group of companies where other brands are included. Spiffbet has strong support from its owners to be the locomotive in the consolidation that is taking place in the gaming industry and I look forward to being a part of this journey. ” says Claes Wenthzel, Chairman of the Board of Goliath.